PPG Corporate Sustainability Report 2010

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  • 1. 201PPG CorporateSustainability Report 0
  • 2. Contents a Message From the Chairman . . . . . . . . . . . . . . . . 1 Company Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 business Performance . . . . . . . . . . . . . . . . . . . . . . . 16 energy & the environment . . . . . . . . . . . . . . . . . . . 20 Stakeholder engagement . . . . . . . . . . . . . . . . . . . . . 4 employees & the Workplace . . . . . . . . . . . . . . . . . 34 leadership, innovation & Sustainability . . . . . . . . . . 6 Community involvement & Social Performance . . 42 ethics & Compliance . . . . . . . . . . . . . . . . . . . . . . . . . 8 awards & recognition . . . . . . . . . . . . . . . . . . . . . . . 50 Corporate Governance . . . . . . . . . . . . . . . . . . . . . . 10 boundary & Scope of report, Gri index . . . . . . . . 542010 PPG CorPorate SuStainability rePort
  • 3. A Message From the ChairmanW hen i think about sustainability at PPG, two thoughts come to mind . First, in many wayswhat PPG is doing in terms of sustainability is new . We it is my belief that, over the next several years, we will be able to leverage these opportunities and overcome this obstacle .are taking advantage of new technologies and new When PPG published its first sustainability report incapabilities, and we are bringing a new emphasis 2008, we stated our intent to issue a full report everyand management structure to bear on achieving our two years and updates in intervening years . now,goals . on the other hand, sustainability is business in this second full report, you will not only read theas usual at PPG . an underlying principle for the facts and figures that represent the measurementcompany since its founding in 1883, a commitment of our efforts over the past two years, but you’ll alsoto sustainability has been crucial to our long-term see specific examples of how we have elevated oursuccess, and we have grown and thrived by making approach and challenged ourselves to grow in asound business decisions with profit, people and sustainable way . in addition, we have enhanced ourthe planet in mind . monitoring and tracking for a range of measures for More recently, despite the difficult economic economic, environmental and social factors, whichconditions of the past two years, we have kept our in turn has enabled us to expand our reporting andpromise to drive sustainability through everything we to communicate even more transparently about ourdo at PPG . We have remained steadfast in our focus progress .on being a sustainable business, resulting in improved it is my hope that through this report, we at PPG notperformance across key economic, environmental and only educate our key audiences – both our own peoplesocial metrics . and outside stakeholders – but continue to encourage as we move forward, there are clearly several a more productive dialogue on how well we are doingopportunities and risks that will present themselves in when it comes to sustainability and performance .the coming years . as the global economic recovery strengthens andbroadens, the transformation that PPG has made inits portfolio will help us sustain our positive financialperformance . in addition, our cash position presents Charles e . bunchPPG with a variety of options to continue to drive Chairman and Chief Executive Officerearnings growth . our newly formed Sustainability Committee posesopportunities for PPG to significantly build on itslegacy of achievement in this area . the team hasdeveloped a framework from which our businessescan drive improvement . PPG’s commitment to innovation will further drivethe development of ‘green’ products . We are seeingincreased demand for our leading technologies thatfeature environmental benefits . We believe we arewell-positioned to give our customers those solutionsto help them meet their environmental sustainabilitygoals . 2010 PPG CorPorate SuStainability rePort raw material costs will likely continue to be asignificant challenge for our coatings businesses in2011 . We experienced inflation in these costs in 2010,particularly in the second half of the year . as a result,we raised our selling prices over the course of 2010in all of our businesses, and we are in the process ofimplementing further pricing initiatives to offset thispersistent inflation . if necessary, we will take furtheractions to offset the increases in 2011 . 1
  • 4. P Company Section Title Profile PPG Industries, Inc., headquartered in Pittsburgh, Pa., USA, is a global supplier of paints, coatings, optical products, specialty materials, chemicals, glass and fiber glass. The company is a leader in each of its markets, and it has earned a strong reputation for streamlined, efficient manufacturing and leading-edge technology and product solutions. PPG’s global sales in 2010 were $13.4 billion. The company has 140 manufacturing facilities and equity affiliates and operates in more than 60 countries around the globe. As of the end of 2010, PPG employed more than 38,000 people across the world. PPG employees and retirees own about 6 percent of the firm’s outstanding stock. As owner-operators, PPG’s people share a deep sense of pride and a strong commitment to their company. PPG is a publicly-owned company, with shares traded on the New York Stock Exchange (symbol: PPG). PERFORMANCE COATINGS n ARCHITECTURAL COATINGS – EMEA n n AEROSPACE. leading supplier of transparencies, sealants, n ARCHITECTURAL COATINGS � EMEA (Europe, coatings and surface solutions, packaging and chemical Middle East and Africa). Supplier of market-leading management services, serving original equipment manu- paint brands for the trade and retail markets such as Sigma facturers and maintenance providers for the commercial, Coatings®, Histor®, brander®, boonstoppel®, rambo®, military, regional jet and general aviation industries . also Seigneurie®, Gauthier®, Guittet®, ripolin®, Johnstone’s®, supplies transparent armor for military markets . leyland®, Dekoral®, trinat®, Hera®, Primalex®, Prominent Paints® and Freitag® . n ARCHITECTURAL COATINGS � AMERICAS AND ASIA/PACIFIC. Produces paints, stains and specialty coatings for the commercial, maintenance and residential OPTICAL AND SPECIALTY MATERIALS n markets under brands such as PPG Pittsburgh Paints™, n OPTICAL PRODUCTS. Produces optical monomers PPG Porter Paints™, PPG, Master’s Mark®, renner®, and coatings, including Cr-39® and trivex® lens materials, lucite®, olympic®, taubmans® and ivy® . high performance sunlenses, cast sheet transparencies, photochromic dyes and transitions® photochromic n AUTOMOTIVE REFINISH. Produces and markets ophthalmic plastic lenses . a full line of coatings products and related services for automotive and commercial transport/fleet repair and n SILICAS. Produces amorphous precipitated silicas for refurbishing, light industrial coatings and specialty tire, battery separator and other end-use applications coatings for signs . and teslin® substrate used in applications such as radio frequency identification (rFiD) tags and labels, n PROTECTIVE AND MARINE COATINGS. leading e-passports, driver’s licenses and identification cards . supplier of corrosion-resistant, appearance-enhancing coatings for the marine, infrastructure, petrochemical, COMMODITY CHEMICALS n offshore and power industries . Produces the amercoat®, Freitag®, PPG High Performance Coatings and Sigma n CHLOR-ALKALI AND DERIVATIVES. Produces Coatings® brands . chlorine, caustic soda and related chemicals for use in chemical manufacturing, pulp and paper production, INDUSTRIAL COATINGS n water treatment, plastics production, agricultural products, pharmaceuticals and many other applications . n AUTOMOTIVE OEM COATINGS. leading supplier of coatings, specialty products and services to automotive, GLASS n commercial vehicle, fascia and trim manufacturers . Prod- ucts include electrocoats, primer surfacers, basecoats, n FIBER GLASS. Manufactures fiber glass reinforcement clearcoats, liquid applied sound dampeners, bedliner, materials for thermoset and thermoplastic composite pretreatment chemicals, adhesives and sealants . applications, serving the transportation, energy, infrastructure and consumer markets . Produces fiber n INDUSTRIAL COATINGS. Produces coatings for glass yarns for electronic printed circuit boards and appliances, agricultural and construction equipment, specialty applications . consumer products, electronics, automotive parts, residential and commercial construction, wood flooring, n FLAT GLASS. Produces flat glass that is fabricated into joinery (windows and doors) and other finished products . products primarily for commercial construction and resi- dential markets, as well as the solar energy, appliance, n PACKAGING COATINGS. Global supplier of coatings, mirror and transportation industries . inks, compounds, pretreatment chemicals and lubricants for metal and plastic containers for the beverage, food, Details about PPGs operational structure, including subsidiaries and joint ventures, are available at www.ppg.com . general line and specialty packaging industries .2 2010 PPG CorPorate SuStainability rePort
  • 5. PPGBlueprint PPG Industries Our Vision • • • • • to continue to be the leading coatings and specialty products company to be true to our values and ethics to grow by being an integrated, market-oriented enterprise to achieve consistent sales and earnings growth to provide superior shareholder returns Our Values Fundamental to who we are is an unwavering commitment to high ethical standards and integrity . We implement our strategies across all levels of the organization in an uncompromising, ethical manner . • • • • Dedication to the customer – We are in business to serve customers . We focus on our markets and dedicate ourselves to meeting the products and services needs of our customers . Respect for the dignity, rights and contributions of employees – We operate safe, healthful and harassment-free workplaces that value diversity, promote teamwork and reward performance . We develop our people through continuous learning, creating an environment where opinions are expressed and respected . Recognition of the concerns and needs of society – PPG recognizes its responsibility to preserve and protect the global environment in which the company operates . to this end, we run our businesses using sound environment, health, safety and product stewardship practices, while providing product solutions that reduce energy consumption and minimize environmental impact . We communicate with the public, participate in governmental processes, and support local communities . Value of supply chain relationships – We leverage supplier competencies and develop relationships that focus on mutual, continuous improvement and a shared responsibility to meet our customer requirements . • Responsibility to shareholders – We are a performance-focused company committed to the stewardship of the corporation and to delivering returns to PPG’s owners . Our Objectives Fundamental to our success is our ability to implement 2010 PPG CorPorate SuStainability rePort breakthrough initiatives to solve problems, achieve operational excellence and maintain the lowest cost position in the supply chain . • be the top-ranked supplier to our customers . • Grow our earnings per share by 10 percent per year . • achieve an average return on capital (roC) of 15 percent . Jean-Claude Robert, Absolu • attain 30 percent of sales from products System® colorist in Vitry Sur Seine, that are 4 years old or less . France, completes tinting of a • increase output per employee by at least supply of paint for a customer. 5 percent per year . 3
  • 6. Stakeholder Engagement A s PPG strives to continually improve its sustainable business practices, engaging in open communication and cooperation with its Employees How PPG engages ■■ ■■ Companywide CEO-led webcast presentations and Q&A Daily intranet articles and quarterly global employee magazine ■■ Regular employee communications from executives, business leaders and locations stakeholders is critical at all levels . PPG seeks to ■■ Global employee communications survey establish and maintain productive relationships with ■■ Training programs ■■ HR Service Center all of its key stakeholders, among them employees, ■■ Family-inclusive activities, such as open houses customers, suppliers, government officials, investors ■■ Diversity councils and residents of communities in which PPG operates . ■■ Wellness programs ■■ Dispute resolution ■■ Open-door programs in preparing this report, PPG undertook a project to ■■ Collective bargaining ■■ Ethics hotline define its key stakeholders and learn more about how ■■ Quality programs functions and businesses prioritize and respond to ■■ Recognition events stakeholder concerns . Due to the size and scope of Customers ■■ Sales calls operations, each PPG business and function has the ■■ Account management interaction ■■ Trade shows responsibility to effectively engage the company’s ■■ Industry gatherings stakeholders and use various tools to identify their ■■ Technical and application support ■■ Training sessions or workshops perspectives on business activities. Specific feedback ■■ Company-owned stores from internal sources was used to better understand ■■ Distribution channels four key areas: how PPG today interacts with key ■■ Customer service call centers ■■ Advertising and marketing communications stakeholders; what their concerns are; how PPG has Suppliers ■■ One-on-one meetings addressed those concerns; and the strategic benefits ■■ Industry/trade groups of doing so . input came from departments such as ■■ Online supplier portal on www.ppg.com ■■ PPG Purchasing & Distribution website and intranet sales and marketing within each business, as well as ■■ Supplier Added Value Effort (SAVE) online program plant managers and corporate functions for purchasing ■■ Corrective Action Incident Reporting (CAIR) quality communication and distribution, investor relations, government affairs and corporate communications . Investors/analysts ■■ One-on-one meetings ■■ Quarterly earnings announcements, conference calls and presentation materials While this analysis is conducted on an ongoing basis ■■ News releases and SEC filings ■■ Annual Report and overview presentations throughout the company, the matrix presented here ■■ Annual Meeting of Shareholders provides a snapshot of our stakeholder engagement ■■ Annual Capital Markets Day practices . While it is not inclusive of all stakeholder ■■ Presentations by PPG executives at financial/industry conferences ■■ Investor Center on www.ppg.com engagement activities, it captures the core elements of how PPG engages stakeholder groups on topics of Government ■■ Visits to elected officials and agencies interest and the value each group’s input provides to ■■ PPG employee political action committee PPG’s business practices . ■■ Government Affairs website ■■ Industry and trade associations ■■ Plant tours, site visits for government officials ■■ Grassroots advocacy Philanthropies and ■■ PPG Industries Foundation nonprofits ■■ Corporate charitable contributions, including dinners and events ■■ Employee giving programs ■■ Corporate global charitable contributions program (Asia/Pacific and EMEA) ■■ China corporate social responsibility (CSR) committee and program ■■ Canadian charitable contributions and employee programs ■■ Disaster response ■■ One-on-one meetings and site visits ■■ Sponsorships ■■ News releases and publicity ■■ Family programs Residents of ■■ Charitable giving programs communities where ■■ Visits by community emergency services PPG operates ■■ Local sponsorships ■■ Public education support and interaction ■■ Community boards ■■ Open houses/days ■■ Community meetings and events ■■ Community volunteerism ■■ Community steering committees ■■ Local media relations ■■ Industrial park membership ■■ Community Advisory Panel (CAP) ■■ Hazardous waste collection ■■ Chamber of commerce membership ■■ State or city industrial association membership ■■ Permit hearings4 2010 PPG CorPorate SuStainability rePort
  • 7. Key areas of interest How PPG has responded Strategic benefits■■ Company strategy and performance ■■ Translating internal communications for global audiences ■■ Increased employee engagement, retention■■ Business conditions ■■ Instituting more regional news coverage outside of the United States and ■■ Expanded employee knowledge and performance capability■■ Opinions of executives more business-specific coverage ■■ Compliance with regulations and laws■■ Compensation ■■ Increasing CEO and key executives’ visibility to employees ■■ Customer satisfaction■■ Benefits programs ■■ Adding diversity councils, such as Lesbian, Gay, Bisexual and Transgender ■■ Quality control■■ Legal issues (LGBT) ■■ Employee health and wellness■■ Community outreach■■ Language skills■■ Product performance ■■ Integrating customer feedback into product development and quality ■■ Products that meet or exceed customer requirements■■ New products and technologies processes ■■ Reduced environmental impact■■ Costs ■■ Providing internal experts to answer questions or concerns ■■ Teslin® Biodegradable substrate■■ Sustainability and regulatory impact (VOCs, REACH, etc.) ■■ Making MSDS and product stewardship information available ■■ Low-emissivity glass products■■ Raw material trends ■■ Supporting products with materials such as FAQs ■■ Zero-VOC paints■■ Product life cycle analysis ■■ Conducting customer surveys ■■ Natural ingredient formulations■■ Business process improvement ■■ Waste collection services■■ Downstream marketing support■■ Global presence■■ Growth opportunities ■■ Publicly recognizing excellent suppliers annually ■■ PPG viewed as industry leader■■ Increased market share with PPG ■■ Developing “partnership” philosophy ■■ Can identify and retain top suppliers■■ Value creation through entire product chain ■■ Enhancing online programs and speed of responsiveness ■■ Working capital improvements■■ Sustainability of business relationship ■■ Exploring and communicating sustainability of PPG products and processes ■■ Increased inventory turns and reduced maintenance, repair and■■ “Green” products operations (MRO)■■ Quality ■■ PPG is better supplier to customers and end-users■■ Cost ■■ Increased sustainable performance■■ Innovation■■ Financial performance and outlook ■■ Increasing communication and visits with investors/analysts in Europe ■■ Greater understanding of financial community’s interests/concerns■■ Plans for use of cash and Asia/Pacific about PPG■■ Dividend commitment ■■ Initiating live quarterly Q&A with executives ■■ Investor confidence■■ M&A strategy ■■ Broadening executive participation to include CFO and business heads as ■■ Enhanced corporate reputation■■ Transparency well as CEO ■■ Favorable ratings■■ Access to executives ■■ Redesigning of Investor Center on PPG.com ■■ Relationships with key global analysts■■ Organic growth prospects ■■ Stock performance■■ Global expansion■■ Timely communication – responsiveness of IR staff■■ How policies affect PPG facilities, operations and employees ■■ Updating managers and employees on key issues and their impact on PPG’s ■■ Positive, pro-business policy and legislation■■ Job preservation and creation businesses ■■ Government officials hearing from PPG employees■■ Business and political priorities ■■ Customized advocacy to specific employee groups ■■ Employee engagement■■ Global competitiveness ■■ Targeted communications ■■ Legislators who understand and act■■ Global giving programs ■■ Developing global giving approach, including structure in Asia/Pacific and ■■ Structured global charitable giving■■ Benchmarking versus peers EMEA programs ■■ Employee recognition and engagement■■ Ease of donation process for employees and retirees ■■ Upgrading Internet presence and online process for giving ■■ Positive corporate reputation, especially with young professional■■ Employee engagement and community involvement ■■ Evaluating and prioritizing areas for giving employees and prospects ■■ Reporting giving statistics ■■ Improved governance, rigor and processes ■■ Updating communications strategy, including social media ■■ Goodwill in communities where PPG operates ■■ Emphasizing math and science education 2010 PPG CorPorate SuStainability rePort■■ Jobs/employment ■■ Issuing community reports detailing business, philanthropic and EHS ■■ Increased two-way communication with local communities■■ Environmental protection performance ■■ Goodwill and positive corporate reputation■■ Charitable giving ■■ Talking directly with community members ■■ Larger, more talented recruitment pool■■ PPG products ■■ Escalating issues to higher management levels for awareness and action ■■ Increased collaboration with community groups■■ Safety ■■ Meetings with local communities to discuss concerns ■■ Improved processes and reduced costs■■ Noise ■■ Modifying processes to reduce noise levels or implementing noise ■■ More positive business environment■■ Vehicular traffic abatements ■■ Employee pride and engagement ■■ Reducing emissions levels and installing emissions control technologies ■■ Sharing plant resources with industrial and local neighbors ■■ Surveying local residents before making physical changes ■■ Rescheduling plant production shifts 5
  • 8. Leadership, Innovation and Sustainability Research & Development Expenditures P PG maintains a long-standing tradition of developing leading-edge tech- nologies, achieving the highest quality standards and meeting customers’ requirements . 2007 (millions of dollars) $363 2008 $468 in response to the burgeoning demand for products with energy or environmental attributes, PPG has developed a number of innovative sustainable solutions . Here 2009 $403 are some recent examples of PPG’s sustainable innovation in action: 2010 $408 Next-Generation Waterborne Paint Technology at BMW In June 2010, PPG launched the first use of waterborne compact paint technology in 0 100 200 300 400 500 a u .S . automotive manufacturing plant at the bMW assembly plant in Spartanburg, S .C ., uSa . the process, known as b1:b2 (basecoat one, basecoat two, applied wet-on-wet) technology, saves time, cost and emissions . it enables automakers to eliminate a step in the coating process as well as the need for separate paint booths and oven dryers . the process saves on capital and operating costs by reducing the manufacturing footprint of a paint shop, reducing energy consumption and increasing overall process efficiency – while achieving superior appearance and color flexibility. Third-Generation Advancement of Waterborne Coatings System Addressing Growing International for Automotive Refinishers Demand for Alternative, Renewable Energy First introduced by PPG in 1999, envirobase® High Performance waterborne coatings understanding the process of harnessing and help improve air quality by reducing the amount of volatile organic compounds delivering wind energy, as well as the harsh conditions (VoCs) released into the atmosphere . the Envirobase High Performance system is in which wind turbines must operate, enables PPG currently used in the u .S . state of California, as well as in europe and Canada, where to provide coatings solutions for this rapidly growing air-quality regulations mandate lower VOCs in refinish basecoats. It is also used by industry. In early 2010, PPG launched a “thin-film” ecologically conscious collision and automobile dealer centers throughout north polyurethane primer and topcoat wind turbine blade america . new Envirobase High Performance basecoats offer a premium-quality coating system . the system uses a thinner build to solution for collision centers that can benefit from an easy-to-use system. Their reduce labor, material use and weight while providing anti-settling properties eliminate the need for expensive stirring machines, and they high adhesion, erosion resistance, flexibility and provide an enhanced ability to match a vehicle’s original finish. protection . new pouch packaging for colorants the pouch vs . the can: • easier opening PPG’s architectural coatings business in europe • easier and better to empty has made great strides by introducing new pouch • less spillage packaging for its colorants . the PPG Colorant pouch replaces metal cans for delivering colorants for tinting • easily closed, before and after being emptied machines, bringing environmental benefits across • less packaging waste the supply chain process . the use of the pouch significantly reduces the amount of packaging waste • almost 90 percent of users prefer pouch to can generated and the amount of colorant waste left in the container. It is more efficient in terms of labor and processing time. Shipping both ways is more efficient because of the benefits in packing full and empty containers together .6 2010 PPG CorPorate SuStainability rePort
  • 9. Teslin® Biodegradable Substrate Larry Mark Abernathy in 2010, PPG introduced Teslin biodegradable substrate, an environmentally- monitors Teslin® substrate responsible material that provides an end-of-life solution while maintaining production at PPG’s durability, printability and built-in security . in third-party laboratory testing, Teslin Barberton, Ohio, USA, biodegradable substrate broke down into components such as carbon dioxide and chemicals plant. water when placed in an anaerobic (oxygen-free) environment containing microbes that “eat” polymers. One customer, a loyalty-card manufacturer, earned a 2010 Élan award from the international Card Manufacturers association for a facility access card produced using Teslin biodegradable substrate . Leading Transmissive Glass Products in 2010, PPG introduced Solarphire® AR anti-reflective glass, a product engineered to maximize solar energy transmission to solar-collecting photovoltaic cells . Solarphire AR glass is formulated with a proprietary anti-reflective coating that facilitates the efficient conversion of solar light into energy. Solarphire ar glass continues PPG’s history of innovation in the development of stacked, thin-film coatings for glass. In 1983, PPG commercialized the world’s first temperable coated low-emissivity (low-e) glass. Over the past three decades, the company has continued to advance thin-film coating technology and is now directing it toward the production of solar energy . Global Commitment to UV/EB Coatings Market PPG researchers are helping to facilitate the efficient use of energy by advancing ultraviolet (uV) and electron beam (eb) technologies used for curing today’s high- performance polymer coatings . both forms of energy interact directly with the components of the coating as a catalyst to form a polymer bond that offers high strength, low cost and environmental friendliness – extremely fast . PPG’s uV/eb 2010 PPG CorPorate SuStainability rePort coatings meet regulatory guidelines for low VoC and hazardous air pollutant (HaP) content . PPG conducts uV/eb curing research and manufacturing at several facilities in the united States and France . Meeting Cool Roof Requirements of LEED®, ENERGY STAR®, Title 24 and ASHRAE 90.1 Duranar® Vari-Cool® coatings reflect the sun’s energy with pearlescent pigments that use ultra-Cool® infrared-reflective technology by PPG, and they changeBill Clark, light color according to viewing angle, offering designers a unique look while meetingcell operator,adds a raw material the needs of builders. The fluoropolymer coatings provide excellent performanceto a disperser making against weathering in all environments. By reflecting the sun’s heat, the pigmentsDuranar® extrusion coatings keep people inside buildings cooler while reducing air conditioning costs .at PPG’s Springdale, Pa., USA,industrial coatings plant. 7
  • 10. Ethics and Compliance O perating with integrity is at the core of PPG’s mission and culture . the company’s 128-year history of growth and success demonstrates the value of a reputation built by conducting business in an ethical and responsible manner and maintaining the trust of business partners, customers, investors and employees alike . PPG’s Global Code of Ethics Integration and Alignment PPG’s commitment to perform with integrity is instilled PPG expects its employees to comply with local laws while demonstrating the in every employee as an expectation of behavior highest level of ethics at all times . From time to time, this has required the Global guided by the PPG Global Code of ethics, a Guide to ethics and Compliance Committee to revise the code in order to ensure that it is Corporate Conduct . this code sets forth the principles consistent with evolving global standards . to that end, the committee is currently that apply to PPG people everywhere and in every revising the code to reflect new industry initiatives, government regulatory reforms, circumstance . it provides a clear, unwavering set of and societal concerns . standards for business conduct, underpinned by the following specific commitments: For example, in 2010, the Automotive Industry Action Group – a not-for-profit association of companies advancing issues in the automotive industry – asked its • to furnish goods and services that meet suppliers to align with its Global Working Conditions Guidance Statement, which our customers’ and society’s needs requires responsible working conditions and the treatment of all individuals with dignity and respect throughout the supply base . PPG fully supports these standards • to provide employees with a safe, healthy and has updated the code to add specific language to that effect. Also, at the and fulfilling work environment end of 2010, the committee initiated several other updates to the code . these are focused on (1) better integrating the code with the company’s evolving sustainability • to afford our shareholders a superior blueprint, (2) strengthening anti-corruption and anti-bribery language pursuant to return on investment the u .S . Foreign Corrupt Practices act (FCPa), and (3) explicitly prohibiting human rights violations such as forced labor . • to contribute as a good corporate citizen to each nation and community in which In addition, specific to its U.S. operations, PPG recently issued a supplemental ethics we operate policy that provides specific ethical guidance with respect to PPG’s dealings with the u .S . government . as a federal contractor and subcontractor, PPG is subject to the PPG Global Code of ethics is issued by the com- the ethics and compliance obligations that are contained in federal procurement pany’s Global ethics and Compliance Committee . regulations and contract clauses . this stand-alone policy addresses ethics issues Headed by PPG’s Chairman and Ceo, the committee specifically regarding the federal contract process and related reporting obligations, has been in existence since 1989 . its purpose is to covering subjects such as kickbacks, gratuities, entertainment of public officials, set and review ethics-related policies and practices contingent fee arrangements and the integrity of the procurement process . nearly within PPG . 400 PPG employees were asked to certify their understanding of and compliance with the obligations in this supplemental policy . Finally, PPG is supplementing the code to reinforce its commitment to the highest standards of ethical conduct in public policy and the political process . this includes strict adherence to laws regarding financial campaign contributions, lobbying and political action committees (PaCs), as well as the government contracts process . Code of Ethics for Senior Financial Officers PPG puts a special emphasis on promoting transparency in its reporting and ethical conduct in financial management. The company requires the principal executive officer, principal financial officer, principal accounting officer or controller, and any other officials performing similar functions in every location to adhere to an additional Code of Ethics for Senior Financial Officers. This code emphasizes compliance with regulations of the u .S . Securities and exchange Commission as well as other applicable federal, state and local laws and regulations .8 2010 PPG CorPorate SuStainability rePort
  • 11. Respecting the Codethe PPG Global Code of ethics is supported by an harassment, contracts and competition rules . in 2010,extensive system of policies and procedures, including 29 percent of PPG employees enrolled in the PPGtraining and communications programs . each new Policies, ethics and legal training course .PPG employee, no matter where in the world he orshe works, is to receive a copy of the code within days as PPG enters new markets, makes acquisitions andof joining PPG . PPG publishes the code in 19 different expands, the company is committed to reinforcing itslanguages, and offers it both in printed form and on standards of conduct and upholding respect for humanthe Web . PPG also invests considerable time and dignity and rights, as expressed in the PPG blueprint .resources in managing a customized ethics training With all of its acquisitions, PPG’s due diligence processprogram . every employee at the manager level or includes an evaluation of the company’s ability toabove is required to complete ethics and compliance operate within the guidelines outlined in the PPGtraining annually, as is every employee involved in Global Code of ethics, ensuring that the acquiredpurchasing, law or finance. Training for current and company operates safe and healthful workplaces, andpotential corporate leaders often includes practice does so within the confines of local laws.scenarios for tackling key ethical dilemmas . each year,an estimated 17,205 PPG employees from around in addition,actingbest wayencour- What’s the I am PPG and meeting ethically to make surethe world participate in the company’s ethics training ages employees laws and askwithlegal must to policies which they my compliance obligations? Every employee hasprogram, accounting for approximately 8,500 hours of or ethics-relatedOffice, isquestionsGlobal comply, no matter what the job. Our responsibility, as the Ethics and Compliance to share appropriate information and guidance on laws and policies related to business ethics andtraining . Hundreds more complete customized ethics through the EthicsmonitorandthetheExperts”to you Global “Askchanges in your questions.areas,it’s up the compliance, Policy, answer law in these But oversee to fully review, understand and abide by these laws and policies.and compliance training sessions . in 2010, PPG trained feature on youthethe online legal training sessions that are We urge to take company’s always available on My Learning Connection. Regularly visit themore than 3,700 employees in live sessions on ethics ethics intranetand Compliance Web site at: http://na.web. Global Ethics sites . PPG has ppg.com/sites/ethics/en/Pages/default.aspx. Contact the tollfree Ethics Hotline (listed inside this brochure),and compliance, accounting for nearly 2,800 hours of committed violations. Still clock, aif question? Submit it anythe online available around the providing policy to have you need to report to a or illegaltraining . between the two formats, nearly 55 percent response resource “Ask contact any member Web site, the PPG Ethics Committee,these questions at to or the Experts” on the of the Law Department any time.of PPG employees completed training on ethics within two business days .online at: https:// Employees can also report an incident www.tnwinc.com/ reportline/PPGcompliance . in 2010, approximately 20,000 employees However you make your report, remember that it is against PPG policy to retaliate against anyone for making a good faith report of a violation of law or the Code. Also, all reports arealso participated in training on export control . taken in strict confidence and if you request, PPG will make every effort to maintain the anonymity of anyone disclosing suchother training topics have included anti-corruption, information. Regardless of who receives your report, that person is responsible for ensuring that it is handled properly and that you are treated fairly in the process. One PPG Place PPG’s Pittsburgh, PA 15272 Global Ethics 412-434-3131 and Compliance www.ppg.com ProgramExport Control #2803 3/4/11PPG maintains a strong commitment to compliance, which is an important element of itsemphasis on ethical business practices. PPG’s philosophy is to first proactively educateits employees on a broad array of compliance issues in order to help its workforce avoid Complianceviolations. However, when an incident of non-compliance does occur, PPG systems allow the PPG ethics Hotline provides a completelythe issue to be reported and addressed as quickly as possible. For example, employees anonymous way to report any concern aboutare encouraged to report any suspected violations of any U.S. export control laws or unethical, illegal or questionable business activity .regulations; PPG’s export compliance policies, controls or procedures; or PPG’s Global the hotline is available to employees around theCode of Ethics related to PPG’s export compliance policies, controls or procedures by world in their own languages . it is also available tocontacting the company’s Chief Compliance Officer directly. the company’s suppliers and customers . 2010 PPG CorPorate SuStainability rePortA recent export compliance issue demonstrated PPG’s ongoing determination to in 2010, PPG took steps to ensure that the hotlinesquarely meet both its legal obligations and ethical commitments in this area. In is administered consistently around the worldDecember 2010, PPG and its wholly-owned subsidiary, PPG Paints Trading Shanghai and further enhanced it by adding an anonymous(China) (SPT), reached a settlement with the U.S. Department of Justice (DOJ) and the email capability . the hotline is now managedU.S. Department of Commerce’s Bureau of Industry and Security (BIS). The settlement by one independent firm whose representativesresolved investigations by the DOJ and BIS of shipments by SPT of small quantities of are trained to investigate each call, maintain theprotective coatings for potential use in Pakistan that were made without the required caller’s anonymity and bring each situation to anexport license. PPG acted promptly once it learned of the wrongdoing. With the appropriate resolution .assistance of outside counsel, the company immediately began an internal investigation,quickly responded to administrative and federal grand jury subpoenas, and cooperated in the 12 years since its institution, the PPG ethicswith the DOJ and BIS on their investigation. PPG’s aggressive response on this matter, Hotline has received more than 1,460 calls fromand its renewed commitment to an enhanced export compliance program that will further employees . While more than 80 percent of theseoverall compliance with export control laws, reaffirm its commitment to maintaining a calls are related to issues other than ethics, PPGvigorous global ethics and compliance program. management investigates and responds to every call . 9
  • 12. Corporate Governance Board of Directors P PG industries is governed by an 11-member board of Directors, 10 of whom are not employees of the company . Charles e . bunch is • the Audit Committee ensures the integrity of the company’s financial statements and compliance with legal and regulatory requirements, and it manages PPG’s internal and external auditors . both chairman of the board of directors and chief executive officer of PPG . the company’s Corporate • the Nominating and Governance Committee oversees the Governance Guidelines, which are published and composition of PPG’s board of Directors by regularly reviewing available on www.ppg.com under “Our Company,” membership and nominating prospective members . outline the structure of governance at the company . • the Officers-Directors Compensation Committee oversees PPG’s board of Directors maintains four standing compensation for executive officers and directors, and sets committees, each comprised of independent, non- objectives for incentive-based compensation for executive officers. employee members of the board: • the Technology and Environment Committee assesses the company’s science and technology capabilities and reviews environmental, health, safety, product stewardship and other sustainability policies, programs and practices . Michele J. Hooper Robert Ripp President and Chief Executive Officer, Chairman, Lightpath Technologies, Inc., and Robert Mehrabian The Directors’ Council former Chairman and CEO, AMP Incorporated Chairman, President and CEO, Hugh Grant Martin H. Richenhagen Thomas J. Usher Audit Committee; Nominating and Governance Committee Audit Committee; Officers-Directors Compensation Committee Teledyne Technologies Incorporated Chairman, President and Chief Executive Chairman, President and Chief Executive Non-executive Chairman of the Board, Officers-Directors Compensation Committee; Officer, Monsanto Company Officer, AGCO Corporation Marathon Oil Corporation Technology and Environment Committee Nominating and Governance Committee; Audit Committee; Technology and Officers-Directors Compensation Committee; Officers-Directors Compensation Committee Environment Committee Technology and Environment Committee10 2010 PPG CorPorate SuStainability rePort
  • 13. For more information on the criteria used to selectPPG’s board of Directors and how the company ensuresthat conflicts of interest are avoided, please refer tothe nominating and Governance Committee Charterand Corporate Governance Guidelines, available onwww.ppg.com . Compensation of the company’sexecutives and senior managers is partially (30 percent)based on personal goals that tie to overall corporatebusiness goals . PPG does not require that its executiveshave personal goals linked to social or environmentalperformance, although some executives – by virtue oftheir responsibilities – may have goals related to thoseissues . PPG’s board of Directors is compensated byretainers . Stephen F. Angel Chairman, President and Chief David R. Whitwam Executive Officer, Praxair, Incorporated Retired Chairman and CEO, Whirlpool Corporation James G. Berges Victoria F. Haynes Nominating and Governance Committee; Technology and Environment Committee Nominating and Governance Committee; Officers-Directors Compensation Committee Partner, Clayton, Dubilier & Rice, and President and Chief Executive Officer, RTI International retired President, Emerson Electric Company Audit Committee; Nominating and Charles E. Bunch Audit Committee; Technology and Environment Committee Governance Committee Chairman and Chief Executive Officer, PPG Industries, Incorporated 2010 PPG CorPorate SuStainability rePort 11
  • 14. Corporate Governance ... continued Executive and Operating Committees PPG’s senior management structure consists of two functional groups: • PPG’s Executive Committee is comprised of Charles e . bunch, chairman of the board of directors and chief executive officer; J . rich alexander, executive vice president, Performance Coatings; Pierre-Marie De leener, executive vice president, architectural Coatings – eMea, and president, PPG europe; Glenn e . bost ii, senior vice president and general counsel; and robert J . Dellinger, senior vice president, finance, and chief financial officer. • PPG’s Operating Committee is comprised of the five members of the executive Committee and nine other executive leaders representing corporate staff functions and various business segments across the company . Anup Jain J. Rich Alexander* Pierre-Marie De Leener* Vice President, Executive Vice President, Charles F. Kahle II Executive Vice President, Strategic Planning Performance Coatings Architectural Coatings – EMEA, Cynthia A. Niekamp and Corporate Development Chief Technology Officer and Vice President, Research and and President, PPG Europe J. Craig Jordan Richard C. Elias Senior Vice President, Development, Coatings Vice President, Senior Vice President, Optical Automotive OEM Coatings Human Resources and Specialty Materials12 2010 PPG CorPorate SuStainability rePort
  • 15. Manassas Park Elementary School, Manassas Park, Va., USA, features Solarban® 70XL glass. PPG plays an active role in working with industry associations by maintaining board and other leader- ship positions with the following organizations: • American Chemistry Council • American Coatings Association • Ethics & Compliance Officers Association • European Council of the Paint, Printing Ink and Artists’ Colours Industry • Fédération des industries des peintures, encres, couleurs, colles et adhesives (FIPEC) • National Association of Manufacturers • The Chlorine Institute Michael H. McGarry Aziz Giga Senior Vice President, David B. Navikas Commodity Chemicals Vice PresidentCharles E. Bunch* Glenn E. Bost II* Robert J. Dellinger* Vice President and Treasurer Chairman and Viktoras R. Sekmakas Senior Vice President Senior Vice President, Finance, and Controller Chief Executive Officer Senior Vice President, and General Counsel and Chief Financial Officer Industrial Coatings, and President, PPG Asia/Pacific 2010 PPG CorPorate SuStainability rePort *Member of the Executive Committee 13
  • 16. Corporate Governance ... continued Sustainability Committee in 2010, PPG’s board of Directors approved the establishment of the Sustainability Committee . this committee’s work is reviewed by the boards technology and environment Committee . the Sustainability Committee establishes policies, programs and procedures – including metrics – to help the company better understand and address sustainability in its business practices in order to remain a leader in the business segments in which it participates . the Sustainability Committee is comprised of two co-chairs and eight members, all of whom are PPG employees. The company defines sustainability broadly to encompass environmental, social and economic performance measures . to that end, the concepts of sustainability that the committee addresses – and that were approved by PPG’s board of Directors – include: • Providing employees with a safe, healthy and fulfilling workplace; • Partnering with employees and their families to improve their health and well-being; • Delivering a superior return on investment to shareholders; • Minimizing the impact of the company’s PPG’s Sustainability Committee maintains six standing subcommittees, each chaired operations on the environment; by and comprised of PPG employees . their missions are as follows: • Furnishing goods and services that meet • Environment, Health and Safety (EHS) the needs of customers and society; and PPG will market, distribute and manufacture products in a responsible • being a good corporate citizen in each nation manner that protects employees, neighbors, customers and the environment . to meet this objective, the PPG eHS management system and community in which the company operates . is integrated into each of PPGs businesses . PPG’s policy incorporates elements of responsible Care® and Coatings Care®, global voluntary initiatives where companies work together to improve environment, health and safety within the industry, and it emphasizes the company’s commitment to continuous improvement, sustainability and protecting shareholders’ interests . • Natural Resources and Climate Change PPG will continue its efforts to conserve natural resources . this includes defining and driving efficient energy and greenhouse gas (GHG) emissions management, reducing the company’s carbon footprint, and continuing to seek ways to utilize alternative resources, such as renewable energy and recycled water . • Product Development and Marketing PPG will continue to enhance its product offering to provide its customers with solutions to their most serious sustainability issues . an objective for many of PPG’s businesses is to develop and market breakthrough, leading-edge products that benefit the environment and conserve energy.14 2010 PPG CorPorate SuStainability rePort
  • 17. A PPG Industries Foundation grant treated students at• Community Engagement and Social Performance Burchfield Primary Following the principles of Responsible Care and Coatings Care, School, Allison Park, PPG will continue to develop and maintain processes to ensure Pa., USA, to a visit from the Pittsburgh Zoo that the company’s presence enhances the communities in and PPG Aquarium which it operates . it will work to build two-way communications Zoomobile educational with key community constituents, governmental agencies and outreach program. appropriate nongovernmental organizations (nGos) . PPG will strive to enhance its corporate citizenship and maintain philanthropic efforts in its communities .• Global Advocacy PPG will work with other interested parties to develop fair and effective global policies regarding energy security, climate change and sustainability . the company will work to understand the sustainability drivers in the key regions in which it operates and will develop strategic partnerships with industry, government and nGos that share PPG’s vision . in addition, PPG will work to proactively influence legislation and regulation.• Sustainability Communications PPG will develop and implement plans to communicate with key stakeholders its positions and efforts regarding sustainability . the company will strive to enhance its reputation among opinion leaders, business partners, the financial community and residents of communities where PPG has operations by positioning itself as a leader and innovator in matters related to sustainability . in addition, PPG will continue to develop sustainability reporting and transparency initiatives on a global basis .Heather Burleigh-Flayer and Jean Chunuse the P2 methodology to assessphotochromic dyes used in makingof Transitions® lenses at theMonroeville Chemicals Center,Monroeville, Pa., USA. Under theU.S. Environmental ProtectionAgency’s Project XL,PPG became one oftwo companies to testand validate EPA’sPollution Prevention(P2) Framework to 2010 PPG CorPorate SuStainability rePortstreamline andimprove thetoxicity screeningof newproducts. 15
  • 18. Business Performance Glass (7%) Commodity A gainst the backdrop of the global economic crisis that now appears to be abating, PPG took significant steps to restructure important parts of its operations . During the economic downturn, the company remained vigilant by Chemicals (10%) Performance Coatings (32%) focusing on reducing costs, improving efficiency in its businesses and selectively Optical & Specialty Materials (9%) investing for growth . Architectural by all accounts, this strategy has proven successful . the company weathered the Coatings – EMEA (14%) downturn, and today, PPG is well-positioned to capitalize on the recovery occurring Industrial in many of the company’s major markets . Coatings (28%) throughout the global recession, PPG never wavered from its overall strategic vision: to solidify its position as the world’s leading coatings and specialty products company . in the process, PPG created a leaner, stronger and more global company, sharply focused on core strengths and expansion into emerging regions . PPG now 2010 Segment Net Sales is carrying tremendous momentum, having built a strong foundation for continued growth in the longer term . Focused Portfolio Our Strategies PPG’s strategic vision is to continue to be the world’s leading coatings and specialty Fundamental to our strategies is operating products company – serving customers in construction, consumer products, our businesses with a global perspective and industrial and transportation markets and aftermarkets . engaging the skills and diversity of all PPG employees . today’s $90 billion coatings industry is growing, and PPG is the only major company in the industry to have sizable market positions in all major end-use ■■ Accelerate profitable growth markets . about 70 percent of PPG’s coatings sales are from special-purpose coatings, which typically require higher technical competency and stronger • Strengthen leadership in coatings and specialty products . customer partnerships . • Continuously improve customer value proposition . as a result of strategic focus and investment, PPG’s coatings and optical and Specialty Materials segments have more than doubled in size since 2000 . these • Drive innovation and new technologies to gain a competitive advantage . segments accounted for approximately $11 billion in revenues for PPG in 2010, while they accounted for approximately $5 billion in revenues in 2000 . What’s • expand global presence . more, these segments comprised 83 percent of PPG’s revenues in 2010 versus 59 percent in 2000 . ■■ enhance operational excellence • establish margin leadership . 2010 • Selectively invest to strengthen all businesses . TOTAL SALES • Strive for cost, supply chain and working capital leadership . 2000 10% 7% 29% 9% 53% 74% 12% 6% 59% As a major employer, PPG’s presence enhances 83% the tax revenue of the nations and communities where it operates. In 2010, PPG paid about $200 Performance, Industrial & Commodity million in taxes globally. Architectural–EMEA Coatings Chemicals Optical & Specialty Materials Glass16 2010 PPG CorPorate SuStainability rePort 2010
  • 19. Geographic Reacheven during the global economic downturn, PPGacted on opportunities to expand its global presence .today, PPG has a broader geographic footprint thanever and continues to make significant moves toexpand its global reach from a u .S .-centric companyto one for which global businesses are major enginesof growth .For example, PPG’s 2008 acquisition of SigmaKalonGroup in the netherlands continues to bringstrategic advantages, including leadership positions A celebration was held for the acquisition of Bairun, a packagingin architectural paint, protective and marine coatings coatings company in Gaoming District, Foshan, Guangdong, inand industrial coatings – and a greatly expanded southern China.presence in Western and Eastern Europe, Asia/Pacific 2010 TOTAL SALESand africa . PPG also strengthened its presence inRussia by opening a new automotive refinish coatingstraining center in Moscow in June 2010 . and in South 2000africa, PPG opened a new packaging and aerospace 10% 7%coatings facility at the company’s Prominent Paints®architectural coatings site . also under construction isa packaging coatings facility at the Damman, Saudi 29%arabia, architectural coatings site . 9% 53% PPG Coatings (Tianjin) Co., Ltd., the largestGeographic diversity will continue to be critical to the 74% PPG plant in Asia, held a ceremony to celebrate the expansion of its waterborne 12% 6%company’s strategy for growth and strengthening of automotive and industrial coatings capacitycore businesses . PPG’s sales in emerging regions such to meet the needs of the regional market. 59%as Asia/Pacific, Eastern Europe, Middle East, Africaand latin america grew 20 percent in 2010 . With sales 83%of nearly $3 .6 billion, these regions now account forabout 27 percent of the company . the united States Performance, Industrial &and Canada now represent less than 45 percent of CommodityPPG sales versus 74 percent in 2000 . Coatings Architectural–EMEA Chemicals Optical & Specialty Materials Glass The economy in the Asia/Pacific region, where the 2010 recession was less severe, is growing rapidly . PPG’s TOTAL SALES automotive oeM coatings business in China and india has experienced notable growth in recent years, and 2000 7% the company has strengthened its presence in China with large projects in Jiangsu and tianjin . PPG also 4% 2010 PPG CorPorate SuStainability rePort 17% broke ground on its first resin production facility in the 4% region in Zhangjiagang . 18% 42% Asia/Pacific is the largest global coatings region as 74% measured by industry coatings demand and volume – 34% and PPG has become the second-largest coatings company in the region . overall, business in the asia/ Pacific region is strong, posting record earnings for 2010 and now representing about 17 percent of PPG’s global revenue . in october 2010, PPG reached an agreement to acquire bairun, a packaging coatings United States & Canada Asia/Pacific company in Gaoming District, Foshan, Guangdong, in southern China, which is consistent with the company’s Europe, Middle East & Africa Latin America strategy to grow in emerging regions . 17
  • 20. Business Performance ... continued in latin america, PPG’s businesses have experienced PPG’s architectural coatings business in Latin America has made dramatic gains through the acquisition four years notable growth as well . Several of the company’s ago of the Tintas Renner architectural coatings business in businesses – from optical products to packaging, Gravatai, Brazil; Santiago, Chile; and Montevideo, Uruguay. industrial and automotive coatings – are growing rapidly in brazil, in particular . Cost Discipline the economic downturn also led PPG to place an even greater emphasis on operating discipline . the company took a number of steps to address costs, margins, working capital and cash flow. These included actions to improve the company’s cost structure and to leverage PPG’s global technological and manufacturing capabilities more efficiently. PPG has maintained its record of strong cash generation . as a result, the company ended 2010 with cash and short-term investments of about $2 billion . Going forward, PPG’s priorities for uses of cash include selective investments to grow earnings, such as bolt- on acquisitions, innovation and capital projects, as well as debt repayment and returning cash to shareholders . Providing a superior return to shareholders has always been a priority for PPG . the company has paid uninterrupted dividends since 1899 and has increased its annual dividend payment for the last 39 Net Sales (millions U.S. dollars) Net Income (millions U.S. dollars) Earnings per Share the toughest economic times . per Share (U.S. years – even during(U.S. dollars) Dividends in 20,000 1000 6 2.5 10,938 12,220 15,849 12,239 13,423 711 834 538 336 769 2010, PPG returned nearly 75 percent of 1.91 2.04 2.09 2.13 4.27 5.03 3.25 2.03 4.63 cash from 5 operations, or nearly $1 billion, to shareholders in the 800 2.0 15,000 form of dividends and share repurchases . 4 600 PPG Segment Income 1.5 10,000 3 ($ millions) 2010 2009 400 1.0 2 Performance Coatings $ 661 $ 551 5,000 200 1 Industrial Coatings 378 0.5 159 Architectural Coatings – EMEA 113 128 0 0 0 0.0 Optical and Specialty Materials 307 235ollars) Earnings per Share (U.S. dollars) Dividends per Share (U.S. dollars) 6 2.5 769 4.27 5.03 3.25 2.03 4.63 1.91 2.04 2.09 2.13 2.18 Commodity Chemicals 189 152 5 2.0 Glass 74 (39) 4 For more information on PPGs financial performance, 1.5 refer to our annual reports available at www.ppg.com . 3 1.0 2 0.5 1 0 0.0 18 2010 PPG CorPorate SuStainability rePort
  • 21. Tianjin, China, waterborne coatings capacity expansion 2010 PPG CorPorate SuStainability rePort In October 2009, PPG Industries broke ground on its first resin production facility in mainland China at the Zhangjiagang Yangtze International Chemical Industrial Park, Jiangsu province. Resins are key raw materials for paints and coatings, and the Zhangjiagang plant will supply otherPPG plants throughout China. 19
  • 22. Energy and the Environment Energy and the Environment Management Approach PPG EHS Management System P PG is committed to operating in a manner that is protective of people and the environment . PPG regularly evaluates business risks as they become Key features of the eHS Management System include the following: • Providing prioritization tools for the most effective use of PPG’s resources known and quantifiable, including climate change . the company recognizes the importance of providing • establishing consistency in eHS performance through the use of a products that meet the needs of markets in the context common language and sharing of successful systems and practices of climate change and increased energy cost, as well as enabling the overall benefit of reducing energy • ensuring continuity of eHS implementation across facilities and regions consumption and greenhouse gas generation . PPG is a major supplier of coatings, glass and fiber glass • Maintaining accountability for eHS performance across all levels products that enhance energy efficiency or are used in of the company alternative energy technologies such as solar or wind power generation . • Driving performance improvements across the organization With continuous improvement as a core value, the the eHS Management System is integrated into each of PPG’s businesses . company is focused on capturing and proactively the system consists of 12 elements . each element, in turn, contains underlying using data to promote stewardship and conservation . principles and a description of PPG’s expectations of its business operations . PPG regularly updates its management practices to meet increasingly strict regulations . in addition, PPG actively participates in the legislative age S Man ment Sys and regulatory process regarding a number of important energy and environmental issues . PPG H monitors legislative and regulatory activity and PGE tem P manages the associated costs of complying with new regulations . PPG also supports policies related to “green” building, wind and solar energy, responsible ELEMENTS Policy ELEMENTS exploration and development of onshore/offshore Awareness energy resources, and the appropriate level of local, 12. Assessment, 1. Management Feedback and Leadership, regional and federal government involvement . Improvement Commitment and Accountability Revie ment 11. Product and Central to PPG’s focus on energy and the Pllan Supply Chain w 2. Risk Assessment Manage a nin EHS environment is its eHS Policy . the policy provides Stewardship and Management ni g the guidelines under which PPG markets, 10. Community distributes and manufactures products globally 3. Facility and Policy Awareness and Equipment Design in a responsible manner that protects employees, Emergency and Construction Preparedness neighbors, customers and the environment . the eHS Policy is implemented through the 9. Incident 4. Information and Investigation Documentation eHS Management System, a global system that and Analysis n on e Co ensures consistent presentation and execution t 5. Personnel Ch e ct ckin nta or r i re and Training m e ra ti o of eHS goals and strategies across all businesses 8. Third-Party iv e g & e worldwide . Services Act io n I m pl O pe 6. Operations and 7. Management & Maintenance of Change PPG’s eHS Policy incorporates the elements of Leg several voluntary global industry initiatives, including al an e nts responsible Care® and Coatings Care®, which d O t h e r R e q u i re m help companies manage safe and environmentally responsible practices in the chemicals and coatings PPG E ts industries . at more than 40 of its facilities, PPG has H S R e q u i re m e n received ISO 14001:2004 certification. For a full list of certified facilities, visit www.ppg.com .20 2010 PPG CorPorate SuStainability rePort
  • 23. Since 2000, reportable injuries at PPG’s chlor-alkali plants, such as the Natrium, W.Va., USA, plant shown below, are down 30 to 50 percent, and internally reportable spills and releases were cut nearly in half from 2009 to 2010. As part of its safety commitment, PPG leads and participates in annual exercises designed to test emergency strategies, readiness and responses.EHS Continuous Improvement Initiatives■■ new eHS Data Collection SystemPPG recognizes that accurate data collection is criticalto regulatory compliance, reporting and disclosure .as PPG’s eHS program moves beyond compliance toanticipating and avoiding environmental, safety orother issues and meeting expanded sustainabilityobjectives, the number of stakeholder groups whoneed environmental data to drive improvement also Operator Jeff Calcote monitors manufacturingexpands . processes at the plant in Natrium, W.Va., USA.To that end, in 2010, PPG made a significantinvestment in installing and educating managers onthe use of new eHS software to collect and analyzeenvironmental data throughout its global operations .this software helps eHS teams to more easily inputenvironmental information and track regular progressagainst environmental goals .through the use of dashboards and customizedreports, managers can make comparisons plant-to-plant, process-to-process, business-to-business andmonth-to-month, and they can visualize their facility’s“footprint,” including the input of raw materials andthe output of waste generated .the new software gives PPG the ability to manageits environmental impact across its many regions andcountries of operations with consistent metrics and inone database . in addition, it creates an audit trail for Driving EHS Integration in New Product Developmentdata integrity and verification. By the close of 2010, thesoftware and a reporting protocol were in place for allPPG manufacturing and research and development ■■ Stage-Gate ® business System for new Product Development all new products developed at PPG use the Stage-Gate business System, ansites to be able to enter data into the new system . operational roadmap for moving a new-product project from idea to launch . the Stage-Gate system divides product development into distinct stages■■ Global Product Safety and incorporates assessment of eHS criteria at every stage . actual stagesanother key PPG initiative, launched in 2005, is the vary depending on the concept and the business . the following representsdevelopment of a Global Product Stewardship (GPS) a typical flow:system to consolidate and standardize eHS data about 2010 PPG CorPorate SuStainability rePortproducts as well as the procedures for generating Stage 1: Idea Creation – an idea is generated by an employee, customer orMaterial Safety Data Sheets (MSDSs), hazard label partner and test drills are performed to prove concept .content and other regulatory documents . by the endof 2010, the GPS system was operational in australia, Stage 2: Business Case – Cross-functional teams assess profitability potentialChina, thailand, taiwan, Vietnam, Malaysia, new as well as impact on factors such as health, sustainability and energy reduction .Zealand, much of europe, the united States, Canada,Mexico and brazil – across approximately 70 percent Stage 3: Product Development – resources are assigned to fully develop aof PPG’s current production . in 2011, businesses product against the goals established in prior stages .producing MSDSs using separate operating systems,including SaP, will be connected to GPS . When the Stage 4: Testing and Verification – Customers provide feedback on the well-initiative is fully implemented in 2011, all of PPG’s developed product to ensure it meets requirements and goals .facilities worldwide will be covered . Stage 5: Commercialization – Metrics are tracked to ensure the product performs as expected in the market . 21
  • 24. Energy and the Environment ... continued ■■ approach to reaCH regulations in europe the european union’s registration, evaluation, in 2010, PPG registered 10 substances: four authorization and restriction of Chemical Substances manufactured in europe and six contained in (reaCH) regulations, in place since 2007, require imported products . by the end of 2010, PPG had manufacturers to gather information on the properties completed more than 480 notifications of classified of their chemical substances and to register the substances to eu regulatory authorities according to information in a central database . new Classification Labeling and Packaging regulation. PPG is committed to meeting and exceeding reaCH PPG europe was recognized by innovest, an indepen- requirements through a four-part process: dent investment consulting firm, as the “top-rated company in terms of management strategy, exposure • Gaining a competitive advantage by identifying and strategic profit opportunities” for its REACH and implementing effective strategies implementation efforts . • Managing compliance to ensure all requirements are met on time, and all registrations are accurate and complete Opportunity: REACH Competitive Advantage • ensuring supply chain continuity when raw PPG’s automotive refinish coatings business took the initiative materials are affected by new regulations to replace phthalates – which add flexibility, transparency, durability and longevity to coatings but have been listed as • Maintaining a strong, sustainable reaCH “areas of concern” by the European Union – in some refinish compliance organization throughout the primer products in advance of any possible prohibition on sale or 11-year phase-in of reaCH provisions manufacture of products containing phthalates beyond 2013. This has been done while maintaining product performance. to achieve reaCH goals and share best practices among PPG businesses, a steering committee at PPG europe oversees all reaCH activities and approves strategies that are carried forward by PPG Polifarb Cieszyn SA, Cieszyn, Poland, announced in October 2010 that it had been awarded the ISO TS 16949 the implementation and coordination team . the certificate. The facility also holds ISO 9001, ISO 14001 and committee meets twice monthly and includes OHSAS 18001 certifications of integrated management representatives from all PPG businesses, as well as systems, and it is the largest Polish producer of industrial employees from functional areas including purchasing coatings for applications such as industrial machines, as and supply chain; legal; and environment, health and for the harvester shown here. safety .22 2010 PPG CorPorate SuStainability rePort
  • 25. Teslin® substrate and CR-39® optical monomer are among the products made at the Barberton, Ohio, USA, chemicals plant.Recognition for RailSafety and HandlingHazardous MaterialsDuring 2010, PPG was recognized forexcellence in chemicals transportationsafety by three rail carriers it utilized in2009: Burlington Northern Santa Fe,Canadian National and Union Pacific. Therecognition is based on the shipment ofhazardous materials without incident ofa “non-accident release,” which includesleaks, splashes or other releases fromimproperly secured or defective valves,fittings and tank shells.Helping Customers Achieve Environmental Improvements■■ PPG’s Solar Performance GroupPPG is committed to making products that help customers to be more environmentallyresponsible . For example, the PPG Solar Performance Group, formed in September2010, focuses on the continuous development and commercialization of glass andcoatings technologies for the solar power industry . the group is dedicated to productand technology development, sales, manufacturing and technical support for durable,“green” coatings, adhesives and sealants. PPG GlASS 2010 PPG CorPorate SuStainability rePort 23
  • 26. Energy and the Environment ... continued ■■ Products that Feature ■■ Green Product innovations Environmental Benefits in its new product development, PPG considers in 2010, PPG launched the promotion of its the life cycle phases of products as well as several ecological Solutions From PPGSM offerings on a key environmental dimensions of green product global scale, incorporating the “green” concept into innovation . among these are energy minimization and its core business . the increased use of cleaner alternative energies such as wind and solar; materials reduction; and pollution by the end of 2010, 30 .1 percent of prevention . PPG’s overall global sales were from green products – products that have For example: beneficial energy, environmental or social attributes . this is an increase of • PPG has long been committed to developing nearly 20 percent versus 2009 . green coating technologies, such as waterborne liquid, powder, low-VoC and high-solids also in 2010, PPG introduced new formulations . among the company’s newest products expected to generate global green coatings are SigmaShield® coatings for sales of $2 billion within the first 60 metal components and industrial towers, which months of being introduced . of these were launched in 2009 . this series of high-solids, new products, products formulated to low-VoC coatings comply with iSo 12944 and promote environmental sustainability norSoK M-501 global environmental standards . by reducing energy consumption, volatile organic compound (VoC) • in 2009, PPG worked with Penske racing at its emissions and water use generated state-of-the-art race car facility in Mooresville, $800 million in global sales in 2010 . n .C ., uSa, to enable the use of PPG’s environmentally-responsible envirobase® High Performance waterborne coatings system, which helps protect air quality by reducing the amount of VoCs released into the atmosphere . • in 2010, Germanischer lloyd, a leading international certification body in the wind energy industry, certified HYBON® fiber glass direct roving products by PPG for use in wind turbine blades . this roving offers wind turbine blade producers the high mechanical performance required for critical structural designs and provides advantages in blade processing . • in June 2009, PPG introduced Sungate® 400 low-emissivity (low-e) glass and Solarban® 65 solar control, low-e glass for residential window manufacturers . these products help customers meet enerGy Star® criteria and green building codes and help achieve the “30/30” requirement established by the u .S . government for energy- efficient windows. • When used in tire treads, agilon® 400 silica from PPG reduces rolling resistance and improves PPG automotive refinish coatings tire handling and traction . these improvements have covered many Penske Racing support the industry’s need to increase vehicle fuel race cars. efficiency and safety and to reduce greenhouse gas emissions . in addition, the new technology helps tire manufacturers increase production efficiency and reduce VOC emissions.24 2010 PPG CorPorate SuStainability rePort
  • 27. • Solarban 70Xl and Solarban 60 solar control, low-e glass helps buildings to rely less on artificial lighting and to reduce cooling loads. an independent study found Solarban 70Xl solar control, low-e glass could save buildings carbon emissions of 400 to 500 tons per year . the 2009 study found that even more energy savings can be achieved by combining the use of PPG’s solar control low-e glass with Duranar® ultra-Cool® metal roof coatings with infrared- Ripolin® Green Bears Ecolabel reflective technology. By reflecting the sun’s heat, Ripolin, a PPG retail paint brand in France, was the coatings keep people inside buildings cooler one of the country’s first to offer a wide range of while reducing air conditioning costs . products with a high concentration of natural raw materials. In fact, some Ripolin products have up to 98 percent natural raw materials in their formulations. The • PPG launched Pr-2007 in February 2009 as the introduction of Ripolin Green included the NF Environment Mark Ecolabel, a lightest airplane fuel tank sealant on the market, voluntary certification mark issued by third-party accreditor AFAQ AFNOR, designed to add 30 percent less weight than indicating that the product complies with ecological and fit-for-purpose criteria. traditional sealants, which enhances aircraft fuel The Ripolin brand is committed to research and develop innovative VOC-free efficiency. PPG also developed a chromate-free, and water-based formulations; to use recycled packaging; to reduce the use of fast-curing aircraft windshield sealant in March 2009 . packaging overall; to support France’s eco-packaging selective waste collection initiative; and to manage and reduce its plants’ impact on the environment.From crops in the fields,to food processing andmunicipal water, the calciumhypochlorite (cal-hypo)used in the Accu-Tab®system kills bacteria such Energy and Environmental Partnershipsas Salmonella and E.coli to help keep the • In December 2009, PPG joined the U.S. Department of Energy (DOE) Savefood we eat and the Energy Now LEADER Program, reinforcing the company’s voluntary effortswater we drink safe. to significantly reduce its industrial energy intensity by 25 percent over theCal-hypo is also used next decade.to treat reuse water 2010 PPG CorPorate SuStainability rePortfor irrigation, having • As in previous years, PPG completed an annual request for information regardingthe added benefit climate change management strategy and greenhouse gas emissions inventory fromof helping farmersconserve water the Carbon Disclosure Project (CDP). PPG’s response was analyzed by CDP’s reportwhile controlling writers and was benchmarked with 1,100 other suppliers who responded in 2010.algae and water PPG scored 76 out of 100 possible points, compared to the industry average of 48.molds. • In 1998, the U.S. Environmental Protection Agency’s (EPA’s) High Production Volume (HPV) Challenge Program asked companies to develop and make public health and environmental effects data on chemicals produced or imported in the United States in the greatest quantities. PPG voluntarily agreed to sponsor 100 percent of its products that were included in the program. Sponsorship of chemicals in the program involved conducting toxicology studies and providing a robust set of environmental and health hazard data for multiple endpoints on each chemical. In 2010, all of PPG’s 25 HPV commitments were completed on time through either EPA’s HPV program or the international HPV program. 25
  • 28. Energy and the Environment ... continued ■■ Green Construction in action • in support of World Expo 2010 in Shanghai, • PPG’s energy-saving Solarban 60 Starphire® glass China, PPG supplied low-emissivity (low-e) transmits 74 percent of the sun’s natural light and glass and low-volatile organic compound (VoC) blocks 60 percent of its heat energy to reduce coatings for expo pavilions and infrastructure near cooling costs and reliance on artificial lighting. the event . these products included Solarban® it was used in the building of the tallest leeD®- 70Xl glass, Seigneurie® inotex™ interior certified building in the United States – the coatings and iVy® waterborne wood coatings . Comcast Center in Philadelphia, Pa., USA . in addition, the largest PPG plant in asia, PPG Coatings (Tianjin) Co., Ltd., began expanding • Sumare, brazil, is home to PPG’s Latin America its waterborne automotive and industrial coatings regional headquarters as well as a coatings plant . capacity to meet the needs of the asian market . in 2010, the plant piloted several projects that harness the sun’s “free” energy for illumination • the Appaloosa Branch Library, Scottsdale, and heat . in the 60,000-square-foot raw materials Ariz., USA, became the first building constructed warehouse, one-third of the building is using 18 with color-shifting Duranar® Vari-Cool® coatings . skylights to allow the penetration of natural light, the building also included Solarban 60 atlantica® eliminating the use of 75 incandescent lamps of low-e glass . these products helped the building 400 watts each for more than 12 hours per day . in to earn leadership in energy and environmental the main dressing room, a natural heating system Design (leeD®) Gold certification by the U.S. has replaced electricity to warm the showers . Green building Council . Compared to other outside, silicon plaques generate electrical buildings of similar size, the library is expected to energy to illuminate the PPG highway sign . use 32 percent less energy, in part due to PPG’s Conventional lamps also have been replaced cool roof coatings technology . by more energy-efficient LED, or light-emitting diode, lighting technology . Appaloosa Branch Library, Scottsdale, Ariz., USA26 2010 PPG CorPorate SuStainability rePort
  • 29. In 2010, PPG coatings helped the CONSOL Energy Center in Pittsburgh, Pa., USA, to become the first National Hockey League arena to earn LEED® Gold certification from the U.S. Green Building Council. Two products from PPG’s protective and marine coatings business – Aquapon® water-based, low-VOC epoxy and Pitt-Guard® rapid-coat, direct-to-rust epoxy – were specified to protect the center’s structural steel from ultraviolet (UV) exposure, rust and other environmental hazards. Solarban® 250 low-e glass also was used on the arena to help make it more energy-efficient.■■ energy Partnership ProjectsPPG joined several prestigious partnerships in 2010 in in october 2010, PPG was selected as one of theorder to contribute its expertise in energy-saving and five industry partners in the Greater Philadelphiaenvironmental products . Innovation Cluster (GPIC), a five-year initiative de- signed to improve the energy efficiency of buildings.in January 2010, the U.S. Department of Energy(Doe) awarded PPG a $1 .6 million grant for the the initiative is located at the Philadelphia navy yard,development of a low-cost glass substrate to promote Pa ., uSa, a 1,200-acre waterfront business develop-the commercialization and mass production of ment that is home to 80 companies . PPG will:organic oleD lighting . oleDs are made from organicmaterials that emit light when an electrical current • leverage a $1 .5 million grant for research andpasses through them . as part of the Doe grant, PPG development in smart glass technology forresearchers will develop a coated glass substrate that incorporation into responsive window products,is less expensive and will enable oleDs that produce in collaboration with Carnegie Mellon university’s 2010 PPG CorPorate SuStainability rePortmore light with less energy . the Doe estimates that School of architecturelighting for buildings accounts for more than 20percent of u .S . energy use, and it also estimates that • Provide expertise in the development of integratedover the next 20 years, widespread adoption of leD glass technologies that will enable a building toand oleD lighting could reduce electricity demands better control solar heat gain and visual lightby 60 percent and prevent almost 260 metric tons ofcarbon emissions . • Demonstrate next-generation products in areas such as roofing, interior coatings, solar power, wind power and other sustainable or energy- efficient applications 27
  • 30. Energy and the Environment ... continued ■■ environmental resources ■■ environmental Claims on Products and education in a marketplace of ever-increasing sustainability PPG’s industrial coatings business developed a product claims, PPG tries to minimize confusion and sustainable design course called Cool Coatings for maintain differentiation by utilizing various scientific Metal Roofing, offered by the American Institute of methods to claim environmental or social product architects’ Continuing education Service . benefits. Where applicable, PPG pursues third-party certification for its products or collaborates with its PPG’s support center for following u .S . Green building customers to consider a product’s use through life Council leadership in energy and environmental cycle stages . However, when self-declared claims Design (leeD®) standards, at www.ppgideascapes.com, are made, PPG marketing practices follow the iSo provides resources and information to help companies 14021 standard regarding self-declared claims “build green” and earn LEED certification for projects. for environmental labels and declarations or local guidelines, if available . PPG also participates in the Climate reSolVe (responsible environmental Steps, opportunities to in 2010, Solarban® r100 glass, Sungate® 400 glass lead by Voluntary efforts) initiative, which seeks to and Clarvista™ shower glass earned Cradle to have every company in every sector of the economy Cradle® Certification at the Silver tier. PPG earned undertake voluntary actions to control greenhouse Cradle to Cradle Certification for all of its architectural gas (GHG) emissions and improve the GHG intensity glass products in 2008, and it remains the only glass of the u .S . economy . manufacturer in the world to have achieved this distinction . the three glasses were named as Cradle to Cradle CertifiedCM products after an audit of the materials used in their formulation and production, and the processes used to manufacture them . Cradle to Cradle Efficiency at Moreuil and Ruitz Certification is awarded by McDonough Braungart In 2008, PPG’s Moreuil and Ruitz, France, architectural coatings plants Design Chemistry (MbDC), which independently undertook a significant initiative to reduce their “carbon footprint.” Using evaluates the total impact of a product on human ADEME Bilan Carbone® methodology, a cradle-to-grave carbon footprint was health and the environment throughout its life cycle . developed. Based on the findings, the Moreuil facility launched a project to Considerations include sustainability of the product’s recycle its wash water tanks and remove bacteria in its wastewater treatment. material ingredients and their ability to be reused, The project was completed in 2010 and achieved a 15 percent savings in water and how efficiently water and energy are used in the consumption. The Ruitz facility is planning to conduct its own project to assess product’s manufacture . the product manufacturer the environmental impact of switching from solvent- to water-based products. also must demonstrate socially responsible corporate practices that encompass social fairness, ethical business standards and environmental stewardship . PPG also requires all of its products to include labeling regarding how to safely use the product and how to dispose of products to reduce environmental impacts . ■■ Funding Conservation and remediation Projects Certified Wildlife Habitats, five locations: PPG continues to partner with the Wildlife Habitat Council to promote environmental stewardship through habitat conservation and development on company- owned properties . PPG and the council have created Certified Wildlife Habitats at five PPG facilities in the united States, Canada and Mexico .28 2010 PPG CorPorate SuStainability rePort
  • 31. PPG is working cooperatively with other companies and stateand federal agencies including the Louisiana Department ofEnvironmental Quality to remediate Bayou d’Inde. Calcasieu River Estuary Lake Charles, La., USA: In July 2010, with louisiana Department of Environmental Quality approval, PPG began using remedial groundwater in its lake Charles chemical plant processes, which will result in annual conservation of 100 million gallons of fresh water. PPG also began creating wetlands along the Calcasieu River as the final phase of a project to remediate and reroute the water discharge canal at its lake Charles facility. The initiative, which began in 2009, reroutes the plant’s water discharge point from Bayou d’Inde to the Calcasieu River and creates 20 acres of wetlands adjacent to the Interstate 210 bridge.PPG also continues to return its former manufacturing Jersey City, N.J., USA: PPG, the City of Jersey Citysites to productive and beneficial use through and the new Jersey Department of environmentalremediation projects . Protection entered into a judicial settlement in 2009 designed to expedite cleanup of the remaining 20Barberton, Ohio, USA: PPG continues to transform chromium sites in Hudson County for which PPGformer impoundment areas or “lime lakes” created has responsibility . in 2010, the parties reached anby decades of past soda ash production with PPG- agreement on a PPG proposal to remove aboutdeveloped technology that encourages plants and 700,000 tons of chromium waste from PPG’s formerwildlife to grow . to date, three of these lime lakes, plant location on Garfield Avenue and five surroundingcovering more than 300 acres and representing half sites over the next four years . Since July 2010, PPGof the total acreage affected, have been remediated . has been conducting an initial cleanup at the Garfielda fourth lime lake of about 260 acres is currently avenue site to remove highly impacted soils andundergoing reclamation activities, with project evaluate a range of cleanup methods . investigationscompletion slated for 2015 . all four of the reclaimed for all sites are expected to be complete in 2011,lime lakes have received Wildlife Habitat Council with completion of remediation activities targeted for 2010 PPG CorPorate SuStainability rePortCertification. In October 2010, the 110-year-old December 2014 .specialty chemicals plant hosted an open houseattended by 400 community members . it featureddisplays and a bus tour of the lime lakes reclamationproject . PPG Jersey City remediation 29
  • 32. Energy and the Environment ... continued Energy and Environmental Performance ■■ increased Production, enhanced Data reporting as a result of the improving economy and growing customer demand for its products, PPG increased production across many of its facilities in 2009 and 2010 . this led to an increase in many environment-related consumption and emissions metrics . in addition, PPG has integrated new software that enables it to better understand and manage the environmental impact of its global operations. The company believes that it has for the first time captured a full picture of its environmental footprint . Having this comprehensive information available in a global database will allow the company to drive its ongoing sustainability efforts even more effectively . ■■ energy and Greenhouse Gas emissions Global Energy Intensity: one of the primary ways PPG Global Energy Intensity Summary that PPG tracks energy use is through energy intensity, (million BTUs per short ton net product) 10 9.29 or the number of million british thermal units (btus) of 8.98 8.79 8.94 energy used per short ton of product manufactured . 8.70 Since 2006, PPG has experienced a slight decline 2016 Goal Line in total energy intensity as a result of focused and 8 effective energy management practices, through stagnant and then improving economic environments that presented varying production demands . total 6 energy intensity in 2010 increased from 2009 levels, due to increased energy use in response to the improving economy . PPG continues to progress toward its goal of reducing its global energy intensity 4 from 9 .29 million btus per short ton product in 2006 to 7 .00 million btus per short ton product in 2016 . Direct and Indirect Energy Consumption: in addition 2 to energy intensity, PPG also measures both direct and indirect energy consumption . Direct energy consumption is the amount of primary energy combusted on-site 0 by PPG . Direct energy sources employed by PPG may ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 include coal, natural gas, fuel distilled from crude oil, propane, biofuels, ethanol and hydrogen . PPG reported PPG Global GHG Emissions 8 direct energy consumption of 69 .27 trillion btus in 2010 . (million metric tons CO2 equivalent) indirect energy refers to the energy consumed by PPG 7 that is generated by, and purchased from, external 6.34 6.47 6.24 suppliers . PPG consumes indirect energy through its use 6.09 2011 of electricity, heat, steam, and electricity generated from Goal Line 6 5.53 alternative energy sources such as solar and wind . PPG reported indirect energy consumption of 9 .94 trillion 5 btus in 2010 . 4 Greenhouse Gas (GHG) Emissions: effective energy management practices also led to a decline in PPG’s 3 GHG emissions, from 6 .34 million metric tons of carbon dioxide (Co2) equivalent in 2006, to 6 .09 million metric tons of Co2 equivalent in 2010 . While PPG fell short of 2 its 2010 goal of limiting GHG emissions to 5 .83 million metric tons of Co2 equivalent, the company continues 1 to work toward its long-term goal of reducing emissions to 5 .7 million metric tons of Co2 equivalent 0 ’06 ’07 ’08 ’09 ’10 ’11 by the end of 2011 .30 2010 PPG CorPorate SuStainability rePort
  • 33. ■■ WaterWater Consumed: PPG reported slightly higherwater consumption in 2010 versus 2009, primarily dueto more water being used for cavity water injectionfor brine production in some of the company’scommodity chemicals facilities . overall in 2010, PPGfacilities consumed approximately 449 million cubicmeters of water, slightly higher than the 444 millioncubic meters of water PPG consumed in 2009 .Water Consumed (million cubic meters) 2006 594 2007 430 2008 420 2009 444Water Consumed (million cubic meters) 2010 4490 2006 100 200 300 400 500 600 594 2007 430Water Discharged (million cubic was able to reduce waterWater Discharged: PPG meters)discharge in 2010, primarily because of efforts to 2008 420 455reduce cooling water requirements at its lake Charles, 2006 2009 444la ., uSa, facility . in 2010, PPG reported approximately 2007 441317 million cubic meters of water discharged, down 2010 449 2010 PPG CorPorate SuStainability rePortfrom the 2009 discharge level of approximately 331 2008 3660 100 200 300 400 500 600million cubic meters . 2009 331Water Discharged (million cubic meters) 2010 3170 2006 100 200 300 400 500 455 2007 441 2008 366 2009 331 PPG invested $100 million in energy-efficient membrane cell production 2010 technology for chlorine and caustic soda manufacturing at its Lake Charles, 317 La., USA, plant. In 2010, the use of asbestos was eliminated using PPG’s0 100 200 300 400 500 proprietary Tephram® non-asbestos diaphragm technology. The facility now encompasses the largest completely non-asbestos diaphragm operation in the world, providing a truly world-scale asbestos-free facility overall. 31
  • 34. Energy and the Environment ... continued ■■ air PPG experienced increased air emissions in 2010, primarily due to increased production across its businesses. Specifically, the company reported: • emissions of ozone-depleting chemicals at PPG facilities rose • levels of particulate matter and nitrogen oxide (nox) emissions by approximately 32 percent in 2010 over 2009 levels due to also rose in 2010 . increased production . Particulate Matter (metric tons) Ozone-Depleting Compounds (metric tons) 2006 2,350 2006 43.1 2007 2,066 2007 45.5 2008 2,170 2008 46.4 2009 1,876 2009 34.9 2010 2,362 2010 47.3 0 10 20 30 40 50 0 500 1000 1500 2000 2500 • PPG saw an increase in emissions of volatile organic compounds Nitrogen Oxide (metric tons) (VoCs) in 2010 over 2009 levels due to several factors associated with increased production, specifically in its chemicals, glass and 2006 22,042 industrial coatings operations . Since 2006, PPG has reduced its 2007 20,820 VoC emissions by 21 percent, from 3,181 metric tons in 2006 to 2,511 metric tons in 2010 . 2008 19,416 2009 16,114 Volatile Organic Compounds (metric tons) 2010 18,243 2006 3,181 0 5000 10000 15000 20000 25000 2007 3,073 • PPG continues to introduce initiatives to reduce nox emissions . 2008 2,779 One example was the conversion of float glass furnaces from 2009 2,326 using air-fired to using oxygen-fuel technology. PPG was one of the first companies to install oxygen-fuel furnace technology on 2010 2,511 float glass and fiber glass production lines in North America and 0 500 1000 1500 2000 2500 3000 3500 europe . today, this technology, which PPG now licenses to glass manufacturers around the world, reduces fuel consumption by • though PPG’s sulfur dioxide emissions rose from more than 6,800 15 percent . PPG expects a 2,000 ton per year reduction in nox metric tons in 2009 to 7,775 metric tons in 2010, the company’s emissions in 2011 due to this most recent conversion to oxygen- emissions have decreased by 28 percent from 2006, when they fuel technology . totaled 11,011 metric tons . Sulfur Dioxide (metric tons) 2006 11,011 2007 10,195 2008 8,765 2009 6,807 2010 7,775 0 2000 4000 6000 8000 10000 1200032 2010 PPG CorPorate SuStainability rePort
  • 35. PPG Spills & Releases (per 1,000 employees) 5.0■■ Spills and releases 4.0 PPG I/II/III Spill & Release Rate 2013 Goal LinePPG rates the significance of spills according to the 3.4 3.2 PPG II/III Spill & Release Rate 3.0potential severity they pose to employees and the 3.0 2.7environment, with Category one spills being the leastsevere and Category three being the most severe . 2.6 2.0though PPG’s overall spill and release rate increased in 1.0 1.02010, PPG’s Category two and three spill and release 1.0 0.7 0.7 0.3rates – more severe spills – decreased and surpassedthe company’s goal . PPG continues to work toward 0.0its five-year target of a 10 percent reduction from the 2006 2007 2008 2009 2010 2011 2012 2013previous year in spills per 1,000 employees, from 3 .2 in2008 to 1 .9 by 2013 . Hazardous Waste (metric tons)■■ Waste 2006 78,684Hazardous Waste: PPG disposed of 82,464 metrictons of hazardous waste in 2010, down from 83,760 2007 80,855metric tons in 2009 . this is due to production changes 2008 80,071that affected waste volumes and off-site disposal ofnon-moving or obsolete products . 2009 83,760Nonhazardous Waste: PPG’s level of nonhazardous 2010 82,464waste disposal increased in 2010 to 270,165 metric 0 20000 40000 60000 80000 100000tons – up from 189,215 metric tons in 2009 . theincrease was primarily due to increases in production Nonhazardous Waste (metric tons)in PPG’s glass and chemicals businesses . levels for 210,834PPG’s Glass segment increased largely due to therebuild of a furnace at the Wichita Falls, texas, uSa, 239,254facility and recycling of cullet at the Fresno, Calif .,uSa, plant . the chemicals business experienced an 228,783increase largely due to increased use of coal and 189,215subsequent disposal of fly-ash. 270,165 0 50000 100000 150000 200000 250000 300000 Beauharnois plant reduces energy consumption 2010 PPG CorPorate SuStainability rePort PPG’s chemicals manufacturing plant in Beauharnois, Que., Canada, has reduced costs and increased its competitiveness by lowering its electricity consumption by 5 percent. In 2010, the plant’s energy-saving initiatives were recognized by Hydro-Québec, the utility that supplies electricity to the facility, for being part of a “prestigious circle” of large customers that have a “visionary and proactive attitude” toward energy efficiency and are “models in their industry.”A truck is filled with product at the Beauharnois, Que., Canada, chemicals plant. 33
  • 36. Employees and the Workplace 2010 PPG Workforce by Region P PG understands its success as a company is linked directly to its people . Creating safe, healthy and fulfilling workplaces for employees is critical to PPG’s future success . PPG also understands that organizations that foster As of Dec. 31, 2010 Total number of PPG employees: 38,319 inclusiveness and seek to empower people are more innovative and more productive . With more than 38,000 employees, PPG is committed to continuing Latin to invest in its people and in a workplace defined by constant learning and America recognition of the full diversity of ideas and individuals . (3%) 1,333 Asia/Pacific at PPG, approximately 38 percent of the total workforce is employed in the united (18%) States and Canada; 41 percent in europe, Middle east and africa (eMea); 18 6,809 United States percent in Asia/Pacific; and 3 percent in Latin America. About 41 percent of the total & Canada workforce is covered by collective bargaining agreements . (38%) 14,592 EMEA (41%) 15,585 Pension Plans PPG has defined benefit pension plans that cover certain employees worldwide. The principal defined benefit pension plans are those in the United States, Canada, the Netherlands and the United Kingdom. In 2010, PPG made voluntary contributions to its U.S. defined benefit pension plans and also made contributions to its non-U.S. defined benefit Leadership In Motion Conference pension plans, some of which were mandated by local funding requirements. The aggregate In 2010, more than 80 women from across the company projected benefit obligation (“PBO”) under U.S. participated in PPG’s Leadership In Motion conference, generally accepted accounting principles (GAAP) conducted in Pittsburgh, Pa., USA, by the PPG Women’s as of December 31, 2010, for all of PPG’s defined Leadership Council. The event included an executive benefit plans was $5 billion with an aggregate panel discussion and sessions on the importance of market value of assets of $4.1 billion. During 2010, “Visibility,” “Advanced Career Management,” “The First PPG made changes to certain of its defined benefit 90 Days,” “Leading vs. Managing,” and “Networking pension plans in connection with shifting pension and Mentoring.” Similar events were held in Shanghai, benefits for future service to defined contribution China, and Sao Paulo, Brazil. pension plans. Such changes enacted in 2010 were for the defined benefit plan in the United Kingdom and for certain bargaining unit plans in the United States. In January 2011, the company approved Sharon G. Piciacchio, Vice an amendment to one of its U.S. defined benefit President, Chlor-Alkali & pension plans that represents 77 percent of the total Derivatives Marketing & U.S. projected benefit obligation at December 31, Services and Cal-Hypo, and President of PPG’s Women’s 2010. The impact of this amendment was to lower Leadership Council the estimated 2011 projected benefit obligation by approximately $65 million and lower the estimated 2011 expense by approximately $12 million.34 2010 PPG CorPorate SuStainability rePort
  • 37. Fostering Diversity and Employee Engagement at Transitions Optical Leadership in Diversity Transitions Optical, PPG’s 51-percent owned joint venture, has long embraced diversity in its advertising and marketing campaigns. In 2010, Transitions Optical formed the Transitions Diversity Advisory Board as an outreach initiative to eyecare professionals in the United States. The board is comprised of professionals who have experience serving the needs of groups such as Hispanic-Americans, African-Americans and Asian-Americans. Transitions Optical works closely with board members to ensure the company’s communications are culturally sensitive and appropriate. The board also oversees professional training and education, as well as bilingual and in-language patient education and resources. Gallup Great Workplace Award In March 2010, the Gallup organization announced that Members of the Transitions Optical (Thailand), Ltd. team with the 2010 Gallup Great Workplace Award Transitions Optical had received its “Great Workplace Award,” which honors companies whose employee engagement results in some of the most productive and engaged workforces in the world. Companies are judged on criteria including response rates, overall engagement levels and evidence of engagement impact on performance.Valuing Diversity Diversity Leadership Councilat PPG, valuing diversity means recognizing the PPG’s Diversity leadership Council serves as the umbrella organization responsibledifferences and similarities between people, cultures, for directing and advancing initiatives that drive the company’s commitment tobusinesses and operations . Diversity is not only diversity . the council is supported by four organizations with similar missions, eachcorporate policy at PPG, it is a key part of how the focused on a specific segment of the PPG workforce:company maintains its edge in a competitive globalmarketplace . • PPG’s Women’s Leadership Council seeks to promote an organizational environment that attracts and retains women and helps them contribute toPPG monitors its success in creating a truly diverse, the company’s business success .global workforce with careful attention to its genderand other diversity components, retention of • PPG’s Minority Leadership Council focuses on recruitment and retention ofemployees, and talent management . the company ethnic minorities through career and job fairs, networking events and mentorshipbelieves in embracing the broadest aspects of programs .diversity including business approach or style,religious background, job function, nationality, sexual • PPG’s Lesbian, Gay, Bisexual and Transgender (LGBT) Council, established inpreference and language . 2010, assists in creating a corporate environment that recognizes and supports lGbt employees . it helps to foster a culture of inclusion across the company, to 2010 PPG CorPorate SuStainability rePort include sexual orientation in appropriate policies and practices, and to provide an internal network supporting lGbt employees . For example, through the council’s efforts, beginning January 1, 2011, PPG is providing same-gender domestic partner benefits for U.S. salaried and non-union hourly employees. the same-gender partners of these employees, and their eligible child dependents, are eligible to enroll in PPG’s health care, dental and vision plans . • the EMEA Diversity Council fosters a more diverse workforce across PPG’s europe, Middle east and africa region . together with corporate leadership, an eMea diversity team is assisting the company’s businesses with promoting the benefits of a more diverse workforce and providing help in setting goals and tracking progress . 35
  • 38. Employees and the Workplace ... continued Employee Engagement ■■ educating employees HR Hiring & Selection throughout PPG, employee engagement starts with for Managers Talent Management education . For example, when the europe, Middle east and africa (eMea) region grew from approximately Compensation & Reward 7,000 to about 17,000 employees from 2007 to 2008, Who is it for? • All PPG Managers and Supervisors who would like to learn How do I find out more? • Log onto the PPG intranet and go to the company developed a regional training academy . more about the practicalities of managing a team in PPG. What is the course like? Conflict • My Learning Connection Speak to the UK Training & Development Team: • Management the EMEA Training and Development Academy, The course offers the opportunity to learn about and N Sarah Day: practise, through examples, discussions and case studies, sday@ppg.com • 01449 773388 how to complete some of the activities you need to carry out as a manager at PPG. N Barry Hinsley: established in 2009, consolidates the region’s training Employment Relations barry.hinsley@ppg.com • 01924 354880 N Your local HR manager offerings and spearheads the development of new courses and educational content . the academy maintains a website that includes the eMea training catalog, as well as access to a wide range of tools and links to other relevant training and education programs . the PPG Asia/Pacific Academy, employees have access to personalized learning founded in 2007, provides a framework to encourage and career development at the company’s My learning and development by PPG employees across Learning Connection site, which helps employees that region . it offers a variety of programs that include to identify customized skills-development options technical courses and offerings on leadership and tied to PPG’s Performance and learning Plan . management development and covers personal employees choose their preferred learning style – development and function-specific issues. from instructor-led training to self-paced online courses, webinar simulations and recommended readings . the curricula are developed by leading internal and external subject experts, and new topics are continually introduced . among the most popular offerings are “Supply Chain Fundamentals,” “Supervisory Skills,” “Presentation Skills,” “Time Management,” “Finance Basics,”“Business Strategy Execution” and “Managing Change.” PPG provides performance feedback to salaried and plant employees based on specific key performance indicators relevant to their functions . opportunities for career development guidance are also offerred . Hundreds of PPG scientists from dozens of countries and virtually every PPG location around the world can participate in online, virtual classrooms through webinars. The 90-minute webinars are conducted twice the same day – once early in the Eastern Time zone to accommodate North American, Latin American and European researchers, and again later in the day to accommodate those in the Asia/ Pacific region (about 12 hours ahead). Highly technical coatings-related topics include technologies regarding corrosion protection, powder coatings, pigment dispersion, molecular modeling and high-throughput analysis. Many modules are translated into multiple languages.36 2010 PPG CorPorate SuStainability rePort
  • 39. Focus on Safety and Health ITAlyPPG regards safety and health as its primarycommitments to employees throughout all of itsoperations around the globe . to maintain high levelsof awareness and compliance, training around safetyissues is continuous across the company .to that end, 35 percent of PPG’s course offerings in2010 were devoted to global, regional and local safetyand health training, with nearly 50,000 enrollments incourses offered in 13 different languages .■■ Promoting a Culture of Health SwIT zERl AnD and Wellness ChInAPPG is committed to providing easy access for allemployees to the health information they need,as well as the tools and programs that will make adifference in promoting wellness and addressing UnITany health issues . to that end, in 2010, PPG created ED K InGDits Culture of Health initiative, which provides PPG OMemployees, retirees and their families with informationto help them make informed decisions about nutrition,exercise and disease prevention . CzE Chthe core topics of the program are critical to good REP UBlhealth: nutrition, exercise, health screenings and stress ICmanagement . these are in turn supported by PPG’s10 Keys to a Healthier lifestyle, which focus on actionsthat are scientifically proven to have a positive impacton health .in 2010, PPG organized 71 local health promotionteams to support these company initiatives . in northamerica, annual basic health screenings held in 2010received 31 percent voluntary employee participation,up from 5 .5 percent in 2005 .through PPG’s education, training and risk-controlprograms, the company helps to provide employees Un ITED 2010 PPG CorPorate SuStainability rePortwith the tools to be informed about and manage STA TESissues such as blood pressure, smoking, cancerscreening, immunizations, cholesterol, fitness, boneand muscle health, stress and depression . 37
  • 40. Employees and the Workplace ... continued Shao Liqiang at PPG’s packaging coatings plant in Suzhou, China, carefully adds raw materials to the coatings manufacturing process. ■■ Global Health risk assessment PPG encourages all employees to participate in voluntary, confidential online health risk assessments to help identify specific health issues, develop personal improvement plans, and track progress toward achieving a healthy lifestyle . in the decade ending in 2010, 39,896 employees participated; 56,378 assessments were completed, and 9,160 participants returned for multiple follow-ups . ■■ Global Health and Wellness Summits Starting in north america in 2005, PPG has organized annual summits bringing together health promotion team coordinators from company worksites to discuss policies, processes and programs to foster a culture of health and wellness . in 2010, PPG held a health and wellness summit in europe, and a summit is planned PPG presents an annual Safety and Health Award to operational sites that have for Asia/Pacific in 2011, the first such events in these achieved the highest levels of safety. Two high-performing facilities are among regions . those that have been recognized. PPG’s powder coatings plant in Felizzano, Italy, not only achieved an injury and illness rate of zero in 2009, but it has done so for ■■ occupational Safety and Health five of the last seven years. In 2009, PPG’s packaging coatings plant in Suzhou, PPG has seen dramatic safety improvements in China, achieved an injury and illness rate of zero for the second consecutive year. recent years as a result of setting aggressive goals and implementing stringent daily processes . in 2000, PPG applied Sigma logic® methodology to establish a global safety and health metric known as the PPG injury and illness rate . this unique system for tracking injuries provides a consistent way to measure performance . Since 2000, PPG has reduced its injury and illness rate by 70 percent through 2010, far exceeding internal improvement goals . in 2009, the company established new goals for the 2009–2013 period that expand on its previous plan . PPG estimates that its risk-reduction efforts since 1999 have prevented more than 2,400 PPG injury and illness cases globally . unfortunately, PPG experienced two fatalities in 2010 – one in russia and the other in South africa . both employees were members of PPG sales organizations and were killed in vehicle accidents . Francesco Arcadi, laboratory technican, conducts a paint test at Felizzano, Italy. Spray booths such as this one capture excess paint spray and protect employees from exposure.38 2010 PPG CorPorate SuStainability rePort
  • 41. PPG produces an array of automotive coatings at the Tianjin, China, coatings plant, its largest manufacturing plant in Asia. Du Qing Zhu, lead hand for the automotive cell, makes a check on the production floor. PPG Injury & Illness Rate PPG Total Corporate Injuries & Illnesses Prevented (injuries & ilnesses per 100 employees) (base year = 1999)1.5 2500 2,427 Injuries Prevented 1.30 Cumulative Injuries Prevented 1.241.2 1,996 1.15 2000 1.10 .96 .88 1,5550.9 .81 1500 2010 PPG CorPorate SuStainability rePort .70 1,172 2010 Goal Line0.6 1000 897 .48 .41 .43 692 5080.3 2013 500 442 430 Goal Line 348 382 253 275 181 160 206 184 124 95 58 58 720.0 0 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 39
  • 42. Employees and the Workplace ... continued ■■ ergonomics PPG has actively used the science of ergonomics to reduce the risk of injuries and illness related to interface of its employees with machines and materials since the early to mid-1980s. Ergonomics is the fitting of products, tasks and environments to people in order to reduce the risk of employees developing musculoskeletal disorders . PPG analyzes existing manufacturing systems and job tasks and implements appropriate design changes and other control measures to reduce the risk of future injuries and to enhance productivity and quality . effective ergonomics principles are now routinely considered for all new equipment and workplaces . Since 1989, more than 1,100 PPG employees have completed intensive off-site, multiday ergonomics training courses . upon completing the course, trained employees facilitate their local ergonomics programs and, in turn, conduct ergonomics training for all personnel at their facilities . in addition, nearly 1,300 employees that are members of plant ergonomic improvement teams across PPG’s global network have been trained at workshops at the facilities where they are employed . PPG is currently implementing a global software package as a standard risk-assessment and ergonomic problem-solving tool . through the application of effective ergonomic principles, PPG has reduced the number of ergonomically-related injuries and illnesses by 77 percent, from 0 .47 cases per hundred workers in 2002 to only 0 .11 cases per hundred workers in 2010 . PPG Ergonomic Injury Rate (ergonomically-related injuries and illnesses per 100 employees) 2006 0.24 2007 0.22 2008 0.12 2009 0.14 2010 0.11 0.00 0.05 0.10 0.15 0.20 0.25 Martin Hewitt uses a lift to doff a 20-kilogram fiber glass package from a winder at the Wigan, England, UK, fiber glass plant.40 2010 PPG CorPorate SuStainability rePort
  • 43. Abenasser Amenkour monitors thefilling of containers at PPG’sUithoorn, Netherlands,coatings facility.Starphire® glass by PPG will bethe signature element in the185-foot-tall walls encasing thefirst 13 floors of Tower One in thenew World Trade Center in NewYork City, N.Y., USA – nicknamed“Freedom Tower.” Underconstruction in lower Manhattan,more than 200 sheets of Starphireglass will be used in constructingthe high-rise building. This rendering shows how the new One World Trade Center will appear. 2010 PPG CorPorate SuStainability rePort 41
  • 44. Community Involvement and Social Performance P PG seeks to enhance the quality of life wherever the company has a presence throughout the world . through its corporate foundation and a Prevent blindness america and the Pittsburgh Cultural trust . numerous other PPG employees also serve on boards of regional chapters of organizations such as wide range of local giving and volunteer programs, united Way and Junior achievement and volunteer PPG provides support to projects that reflect their time and energy in support of projects that the interests and values of the company and its benefit their communities. employees . the company assesses the effects it has on the communities in which it operates, as well as For the last 60 years, the PPG industries Foundation the needs it can help meet . has supported efforts that advance education, human services, culture and arts, and civic and community affairs in PPG communities . in 2010, PPG committed Involvement From the to expanding its charitable contributions global Board Room to the Front Line reach and geographic participation by dedicating an as part of its mission to engage with the communities additional $500,000 to support projects in the asia/ where its employees live and work, PPG encourages Pacific and Europe, Middle East and Africa (EMEA) employees’ volunteerism, including executives’ regions . a Global Distribution Committee will manage involvement, with nonprofit organizations. In 2010, these funds at the corporate level, and it will direct members of PPG’s operating Committee, including resources based on local priorities and areas where the CEO, served on more than a dozen nonprofit organizations can have the greatest impact . boards throughout the united States . these include the boards of Carnegie Science Center, Kettering Addressing the Needs of Communities university, Miami university’s School of business, as a global company, PPG constantly looks for ways in which it can contribute to improving the quality of life for the world’s people . Here are examples of successful projects and recognition achieved recently across the PPG global network . ■■ PPG’s lake Charles, la ., uSa, Facility is Partner in education Since 1995, PPG’s “naturelab – Classroom in the Woods” in southwest Louisiana, USA, near the company’s lake Charles facility has provided environmental education and research in addition to the protection and promotion of wildlife populations . located in the middle of a 200-acre wooded tract, the Naturelab “barn” is the control center for environmental education . today, the site features several hiking trails that allow students in grades K-12 to access various microsystems and to study biodiversity, water quality criteria and flora/fauna identification.42 2010 PPG CorPorate SuStainability rePort
  • 45. ■■ Supporting united Way in the Pittsburgh regionMore than 240 PPG employees, friends andfamily members in the Pittsburgh, Pa ., uSa, areavolunteered for united Way’s Day of Caring2010 . Day of Caring matched volunteers with 12nonprofit organizations throughout the regionon projects such as painting; cleaning up lotsand buildings; general maintenance; buildingplaygrounds; and providing companionship tochildren and older adults . PPG’s architecturalcoatings business continued its decade-longpractice of supplying paint to united Way bydonating more than 2,866 gallons of interiorand exterior paint used in Day of Caringefforts .PPG industries Foundation also contributesto local united Ways in the united States .Supporting communities where PPG hasa major presence across the nation, PPGindustries Foundation has contributedmore than $800,000 to local united Ways . 2010 PPG CorPorate SuStainability rePort 43
  • 46. Community Involvement and Social Performance ... continued ■■ Milan, italy, Plant Donates Motor Pump ■■ Promoting Healthy america Sight for life across In 2010, PPG’s Milan, Italy, automotive refinish coatings plant donated a motor pump to the Fire brigade in 2010, transitions optical partnered with bess the book bus, a mobile literacy Headquarters in Milan for transport to the lacor outreach program that has been distributing children’s books and hosting readings Hospital in Gulu, uganda . the pump will be used to for underprivileged children since 2004 . With help from transitions in 2010, bess the supply running water for fire prevention and drinking book bus distributed more than 65,000 books to more than 10,000 underprivileged water from local wells . children in 37 states, while educating children, parents and teachers about the important connection between healthy vision and reading and learning . ■■ assisting the Slovakia Center regional for autism in ■■ Shelby, n .C ., uSa, Plant Hosts Five-Day Healthy Harvest Since 2006, PPG in Slovakia has responded to the Employees at the PPG fiber glass plant in special educational needs of people with autism Shelby, n .C ., uSa, shared their homegrown in the Zilina region and provided support to their produce with co-workers during the “Five-Day families through the regional Center for autism . the Healthy Harvest.” In 2010, about 30 employees center accommodates 23 children with autism in a participated, distributing healthy fruits and private elementary school – the only one of its kind in vegetables to co-workers and their families . Slovakia – and, in addition, offers day care and special counseling for those with autism from preschool age to adulthood . PPG aided efforts to stop a cholera outbreak following the 2010 devastating earthquake in Haiti by partnering with Grove City, Pa., USA-based Deep Springs International. PPG donated Accu-Tab® chlorination systems and more than 2,750 pounds of Accu-Tab tablets for use in 50 chlorinators to serve communities in the cholera-affected Artibonite Valley in Haiti.44 2010 PPG CorPorate SuStainability rePort
  • 47. ■■ Winter Supplies for Wuhu, China, Welfare institute employees at PPG’s automotive coatings manufacturing facility in Wuhu, China, donated winter supplies such as solar water heaters and heavy clothing to help the Wuhu institute of Children’s Welfare provide care for local disabled children . a volunteer day was held at the institute in late november 2010, with more than 30 people from the PPG Wuhu plant in attendance . ■■ trilak ® Paints Plant, budapest, Hungary, aids Flood Victims In 2010, floods and mudslides devastated property and lives in Hungary. Working with the charitable organization Caritas, the PPG coatings plant in budapest, Hungary, donated 50 pallets of paint to repair floodwater-damaged homes. The project helped restore the living conditions of more than 100 uninsured families in small cities nearby . ■■ Cooking and Protects the environment Women traditional la Seigneurie in Senegal Helps teach ® the La Seigneurie paints group of PPG in Senegal donated recycled metal packaging to FeeDa, an organization in the thiès region of that country that supports and fosters the rights of women . FeeDa uses the material to teach women in Senegal how to make ovens from scrap metal . the metal ovens then enable households to save wood and money used for cooking .■■ Green Coatings foraging China, tianjin, apartment for thein 2010, PPG’s coatings facility in tianjin, China, pledgedto cover all costs for interior decoration of the tianjin l’AQUIlA SChOOl BEfOREFirst apartment for the aging, including the donationof environmentally-responsible wood coatings, to helpimprove living conditions for the elderly residents . Participating in the Political and Public Policy Process PPG believes in participating in the governmental processes in the nations and communities in which it operates. PPG supports policies related to “green” building, wind and solar energy, and the responsible exploration and development of onshore and offshore energy resources. PPG’s commitment also includes participating in the political process, from engaging government officials to educating PPG employees. PPG’s federal lobbying expenditures for 2010 were 2010 PPG CorPorate SuStainability rePort $989,221. PPG’s Government Affairs team provides a variety of resources, such as posters, side-by-side candidate Non-federal candidates & comparisons and employee lunch-and-learn events, to help inform employees about the political committees process and encourage them to vote. PPG Government Affairs provides nonpartisan information $29,856 focused on candidates’ positions on business policy issues, and it does not endorse candidates or tell employees how to vote. In the 2010 election year, the National Association of Manufacturers Federal candidates & recognized PPG for its best practices in educating employees to become motivated participants committees in the political process and in efforts aimed at increasing voter turnout. $59,500 In addition, a political action committee (PAC) is fully funded by voluntary contributions from PPG employees and totals $89,356. All contributions to various political candidates and parties are approved by a committee of PPG executives. 45
  • 48. Community Involvement and Social Performance ... continued ■■ PPG industries Foundation • GIVE Grants – in 2010, the PPG industries Foundation provided more than $470,000 through the Grant incentives for Volunteerism by PPG employees and retirees (GiVe) program to organizations in PPG communities throughout the united States . PPG’s involvement extends beyond funding, with employees serving on organization boards, and employees and retirees serving as volunteers at these organizations within their communities . this in turn earns eligible organizations a $500 GiVe grant if the PPG volunteer applies for one and a $1,000 GiVe grant if the employee serves on the board of directors for the organization . a variety of u .S . community organizations benefited from GIVE grants in 2010, including organizations in natrium, W . Va .; Cleveland, ohio; and lake Charles, la . A Public Education Leadership Community (PELC) grant was awarded to fund a program for the first grade class at Cherryville Elementary School, near PPG’s Shelby, N.C., USA, fiber glass facility. • Pittsburgh Zoo & PPG Aquarium – through a 10-year grant, PPG and the PPG industries Foundation provide funding to help sustain the zoo . today, it has become one of the best zoological parks in the world, one of very few with a world-class aquarium, and one of the most popular family destinations in the Pittsburgh, Pa ., uSa, region . a variety of PPG products are utilized at the zoo, including accu-tab® tablet chlorination systems that keep the sea lion and beaver exhibits sparkling clean; PPG glass on the tiger encounter window; and PPG coatings in educational classrooms and new exhibits .46 2010 PPG CorPorate SuStainability rePort
  • 49. 2010 Foundation Project Highlights PPG Industries FoundationExamples of programs supported by the foundation in 2010 include the following: 2010 Actual Expenditures• The YMCA of Metropolitan Milwaukee, Wis., USA, South Shore Center’s SPLASH (in thousands) learn-to-swim program aimed at improving second-graders’ water safety TOTAL – $4,493• Creation of The Western Pennsylvania Conservancy’s new membership video Public that will be used in conjunction with tours of Fallingwater, Frank Lloyd Wright’s Education architectural masterpiece in Mill Run, Pa., USA – PPG Industries and the PPG Leadership Community Industries Foundation have contributed funds to this project, and several of PPG’s Grants businesses have facilitated the replacement and refurbishment of the glass and (PELC) painted surfaces throughout Fallingwater. ($267) Human Services Education ($1,010) ($1,716)• Support for Ronald McDonald House Charities of Pittsburgh’s “Healing More Hearts, Expanding Our Home” program to meet the growing demand for housing services for the families of children receiving life-saving treatments at Pittsburgh hospitals Grant Incentives for Volunteerism• Destination Cleveland County, N.C., USA, to support its Rhythm & Roots capital by PPG Employees & Retirees (GIVE) campaign, created with the help of longtime PPG Shelby, N.C., USA, fiber glass ($470) facility plant manager J.T. Scruggs, the nephew of country music legend Earl Scruggs. Matching Civic & Culture Gifts ($719) ($311) The Dekoral® brand of PPG partnered with famous Polish artist Maciej Kot and the “Smile for Children Foundation” to transform the children’s ward at a local hospital into a fairy tale come true. PPG donated Dekoral paint to help Kot put as much optimism as possible into what is usually a sad and gray place.J.T. Scruggs, longtime PPG Shelby, N.C., USA,fiber glass facility plant manager, and formerShelby Plant Manager Tim Mathis both offeredsupport for the local Rhythm & Roots campaign. 2010 PPG CorPorate SuStainability rePort The YMCA of Metropolitan Milwaukee, Wis., USA, South Shore Center’s SPLASH learn-to-swim program is aimed at improving second-graders’ water safety. 47
  • 50. Community Involvement and Social Performance ... continued Focus on Science and Education innovation is a core value at PPG . to help plant the seeds of innovation, PPG supports programs that broaden access to education and strengthen skills in science, engineering and technology . • in lyon, France, PPG professionals who are also alumni of the iteCH institute regularly volunteer for the school’s iteCH Challenges® – an annual competition aimed at students, higher education institutions and industrialists . the competition brings these three groups together, putting their combined skills to work on innovative technology projects . • in Wroclaw, Poland, PPG employees partner with Wroclaw university and technical university to develop training programs for students and develop classes dedicated to environmental care topics . • PPG industries Foundation teamed with economicsPennsylvania, a not-for- profit economic education and financial literacy organization, to create a classroom curriculum called “The Economics of Alternative Energy.” The program introduced the curriculum in Pennsylvania high schools in 2010, and it covers issues such as the costs of sourcing, the development of alternative generation methods, and the protection and efficient use of resources. Promoting Women in Science PPG provides foundation grants to a number of programs designed to foster girls’ enthusiasm for science, engineering and technology and to help women succeed in completing degrees in these disciplines. • The University of Akron’s Women in Engineering summer camp programs for middle and high school girls • GirlTalk Radio, an initiative of the Girls, Math and Science Partnership in conjunction with SLB Radio Productions, which gives girls aged 11 to 15 a chance to conduct, edit and broadcast interviews with emerging and established female mathematicians, scientists and engineers • Kettering University’s Lives Improve Through Engineering (LITE), a two-week residential program that introduces 11th- grade girls to what engineers do to improve people’s lives48 2010 PPG CorPorate SuStainability rePort
  • 51. Participants in the PPG Adventures in Technology program in the Greater Detroit, Mich., USA, area• in 2010, PPG industries Foundation sponsored 70 • 2010 marked the second year of the PPG new scholarships across the united States . among adventures in technology program in the Greater these were 28 “Plant Community” scholarships; Detroit area with partner Catalyst Connection . four “Merit Scholarships” for employees’ children; the project is funded by a $75,000 pledge 36 “Special Scholarships” for employees’ children from PPG industries Foundation . by pairing and two “National Achievement” scholarships high school students with local companies, the for african-american students . Merit and Special program aims to interest students in science, Scholarship awards are based on national Merit technology, engineering and math as well as Scholarship Qualifying test scores and additional careers in manufacturing . in 2010, students from criteria . Students selected for the scholarships Detroit Cristo rey High School participating in receive $1,500 annually for four years . the program teamed with PPG’s automotive technology center in troy, Mich ., uSa, on a 10-• the american Chemical Society PPG Scholarships- week project to determine the best color palette 2010 PPG CorPorate SuStainability rePort Plus Program provides four-year, $2,500 per-year for a new hybrid/electric vehicle . scholarships to underrepresented-minority students who study chemistry or chemical engineering in college . the grant covers the scholarship and two mentoring training workshops PPG Industries Foundation 2010 $4,492,855 at PPG facilities . a total of 125 minority students Five-Year Summary 2009 $4,499,805 have benefited from the program since it was of Total Grants Paid 2008 $5,242,154 initiated in 1997 . 2007 $4,698,918 2006 $5,283,744 49
  • 52. Awards and Recognition F ollowing are illustrative examples of awards and recognition received by PPG since the publication of its 2008 Corporate Sustainability report in april 2009 . Aviation Week Suppliers’ Innovation Challenge 2010 Qatar Today Green Awards. PPG’s aerospace business was honored in December 2010 for its alteoS™ Sigmacryl ecoplus® paint by PPG, an interactive Window Systems in the Suppliers’ innovation Challenge of Aviation environmentally-friendly paint with zero volatile Week & Space Technology and Defense Technology international magazines . the organic compounds (VoCs), was given a challenge recognizes and promotes groundbreaking work by suppliers in aerospace runner-up award in the “Green Product or and defense . ALTEOS window systems provide controllable dimmable shading for Service” category of the 2010 Qatar Today aircraft passenger-cabin windows with electrochromic technology developed and Green awards . according to antoine lejuez, manufactured by Gentex Corporation. The first electrochromic window shading PPG marketing manager for Sigma in the systems for commercial aircraft, they are used on the boeing 787 Dreamliner and Middle east, “Sigmacryl Ecoplus stands out in beechcraft King air 350i aircraft . the ‘green paints’ sector as it combines superior sustainability, durability and performance.” Ryan Aspy, PPG market development manager, aerospace direct sales50 2010 PPG CorPorate SuStainability rePort
  • 53. Shown at an electrocoatinspection area at aToyota manufacturingplant are (from left) 2010 Automotive News PACE Award for Super High Throw ElectrocoatDavid Janowiecki, paintspecialist; Kim Masse, PPG won a 2010 Automotive News PaCe award in the Product category, which recognizes innovations intechnical sales and new products, components or systems that have significant market impact and act as “game changers” inservice representative; the automotive industry . PPG was recognized for its Super High throw electrocoat, which enables coatings toand Chris Flener, sitemanager, PPG-Kansai penetrate recessed, hard-to-reach areas and interior surfaces on a vehicle without leaving excess paint on theAutomotive Finishes. exterior surfaces. This innovation reduces weight and improves the efficiency of the electrocoat process. Gulfstream 2009 Supplier of the Year the aerospace transparencies group and the atlanta application Support Center (aSC) of PPG’s aerospace business earned a 2009 Supplier of the year award from Gulfstream aerospace Corporation . Gulfstream presents the annual awards to suppliers scoring 100 percent on its supplier report card in all categories of total value chain cost, quality, reliability, delivery, and product and aftermarket support . From facilities in the united States and italy, PPG supplies Gulfstream with high- solids topcoat and sealants, windshields, cockpit and passenger-cabin windows and various light lenses . every Gulfstream aircraft since the Gulfstream i has 2010 PPG CorPorate SuStainability rePort flown with PPG transparencies. Northrop Grumman 2009 Platinum Source Preferred Suppliers Award For the fourth time, PPG aerospace’s los angeles, Calif ., uSa, and atlanta, Ga ., uSa, aSCs in 2009 received the northrop Grumman award, which recognizes companies for achieving distinction in product quality, on-time delivery, customer satisfaction and robust lean processes . the centers deliver transparencies, coatings, sealants and other value-added services for northrop Grumman facilities worldwide . 51
  • 54. Awards and Recognition ... continued Honor Roll of Multinational Corporation’s Contributions to China In the 2009 “Honor Roll of Multinational Corporation’s Contribution to China,” PPG industries was ranked 26th among the top 100 global enterprises by China Enterprise News and the China enterprise CSr research Center . the criteria for the recognition covers more than 10 categories, such as protecting the rights and interests of employment and employees, environmental protection, and energy saving and emissions reductions . Good Housekeeping Seal of Approval for Olympic® Brand Paints and Stains in spring 2010, the entire Olympic exterior Stains line of Maximum® sealants and stains, as well as Olympic Wood Protector sealants and stains, received the Good Housekeeping Seal, joining Olympic Paints, which has borne the seal since early 2009 . First issued to products in 1909 by the Good Housekeeping research institute, the Good Housekeeping Seal is one of the most important and trusted guides in consumer buying .52 2010 PPG CorPorate SuStainability rePort
  • 55. Solar mirrors produced by PPG Flat GlassU.S. Concentrated Solar Power Industry Awards –Best Applied R&D for Solarphire® HVM GlassPPG was a finalist in 2010 in the category of best applied R&D for the first U.S.Concentrated Solar Power (CSP) industry awards, sponsored by CSP today, aninternational organization devoted to promoting the development of concentratedsolar power. The awards recognize excellence in the field of CSP innovation,competitiveness, applied research and development, dispatchability andtechnological innovation . PPG received the honor for developing Solarphire HVMsolar mirror glass, a proprietary combination of three technologies that allow theglass to more effectively concentrate and collect solar energy . Solarphire HVM glassenables CSP plants to generate more power at less cost .2010 Ridler Award for Custom Automotive Design Excellence“Gold Digger,” a stunning 1933 Ford Phaeton sporting a gleaming gold finish byPPG’s automotive refinish business, won the Ridler Award in 2010. The award isregarded as the ultimate recognition of custom design excellence and is presentedannually at the Detroit autorama .Top “Green” Glass Supplier –Door & Window Manufacturer MagazinePPG received one of Door & Window Manufacturer magazine’s first annual “green”awards after being voted the industry’s top “green” glass supplier by readers. Ofthe winners, the magazine wrote, “While these companies have made huge strides[toward environmental sustainability], all are committed to further reducing theircompany’s impact on the environment.” 2010 PPG CorPorate SuStainability rePortRecognition for Corporate Social Responsibility in ChinaPPG was honored at the 2010 China Social responsibility annual Forum in beijingas a recipient of the CSr (Corporate Social responsibility) award Special Prize,chosen from among more than 1,000 submissions . the recognition focused on the“PPG Care Library Project,” launched in September 2009 to help rebuild 50 librariesand provide more than 150,000 books and environmentally responsible coatings toschools in Zitong County, an earthquake-devastated part of Sichuan Province .all together, more than 500 PPG employees representing seven PPG locations in theAsia/Pacific region participated in 11 CSR projects in 2010. The projects providednearly $100,000 in contributions to communities in this region . 53
  • 56. Boundary and Scope of Report This report describes the programs and performance of PPG Industries and its businesses All measurements are in English units unless otherwise indicated. Energy intensity PPG self-declares that this report meets GRI G3 Application Level B requirements. and subsidiaries as they relate to the company’s sustainability practices. PPG’s 2010 is calculated in number of million BTUs per short ton of product manufactured. The information in this report can also be accessed online at www .ppg .com. Corporate Sustainability Report includes environmental data from more than180 facilities Financial information is reported in U.S. dollars. PPG intends to publish an interim update for this report in 2012, which will reflect the in 45 countries on six continents. PPG maintains at least 50 percent ownership in all PPG’s goal for this report is to provide an accurate account of economic, social company’s performance in 2011. PPG is considering external assurance for its next full reporting facilities. Joint venture facilities in which PPG owns 50 percent or less are and environmental performance in the areas that are most relevant to its business and report, scheduled to be published in 2013, which will report on performance in 2012. not reflected in data reported. Environmental, health and safety data reports activity of stakeholders. Using the Global Reporting Initiative’s (GRI) G3 Guidelines and based on The company encourages stakeholder feedback to assess the usefulness of this corporate, manufacturing, and research and development facilities. PPG has attempted feedback from stakeholder engagement, we report on indicators that are important report and to provide suggestions regarding the content of future reports. To provide to be as accurate and as inclusive as possible of all its operations in compiling the to our stakeholders and to our business. In 2010, there were no material changes in feedback or request additional information, contact PPG Industries at One PPG Place, metrics reflected in this report. Due to the breadth of the organization, however, some reporting entities to note. Pittsburgh, PA 15272, Attention: Corporate Communications. measurements, such as environmental and training metrics, may not reflect the activity of every PPG facility worldwide. GRI Index: The GRI Index below was edited for space. For a full index of GRI content, please visit www.ppg.com. PROFILE DISCLOSuRES 4.5 Linkage between compensation and performance for members of 11 EN18 Initiatives to reduce greenhouse gas emissions and reductions 27, 32 Strategy and Analysis the highest governance body and executive management, senior achieved. 1.1 Statement from the most senior decision-maker of the organization. 1 managers, and executives (including departure arrangements), and EN19 Emissions of ozone-depleting substances by weight. 32 1.2 Description of key impacts, risks, and opportunities. 1 the organization’s performance (including social and environmental EN20 NOx, SOx, and other significant air emissions by type and weight. 32 Organization Profile performance). EN21 Total water discharge by quality and destination. * 31 2.1 Name of the organization. 2 4.6 Processes in place for the highest governance body to ensure ** EN22 Total weight of waste by type and disposal method. 33 2.2 Primary brands, products, and/or services. 2 conflicts of interest are avoided. EN23 Total number and volume of significant spills. 33 2.3 Operational structure of the organization, including main divisions, 2 4.7 Process for determining the qualifications and expertise of ** Products and Services operating companies, subsidiaries, and joint ventures. the members of the highest governance body for guiding the EN26 Initiatives to mitigate environmental impacts of products and 28 2.4 Location of organization’s headquarters. 2 organization’s strategy on economic, environmental, and social services, and extent of impact mitigation. 2.5 Number of countries and names where the organization operates. 2 topics. LABOR InDICATORS 2.6 Nature of ownership and legal form. 2 4.8 Internally developed statements of mission or values, codes of 8-9 Disclosure on management approach 34 2.7 Markets served. 2 conduct, and principles relevant to economic, environmental, and Employment 2.8 Scale of the reporting organization, including: number of employees; 2, social performance and the status of their implementation. LA1 Total workforce by employment type, employment contract, and 34* net sales (for private sector organizations) or net revenues (for public 16 4.9 Procedures of the highest governance body for overseeing ** region. sector organizations); total capitalization broken down in terms of the organization’s identification and management of economic, Labor/Management Relations debt and equity (for private sector organizations); and quantity of environmental, and social performance, including relevant risks and LA4 Percentage of employees covered by collective bargaining 34 products or services provided. opportunities, and adherence or compliance with internationally agreements. 2.9 Significant changes during the reporting period regarding size, 17 agreed standards, codes of conduct, and principles.(Include Occupational Health and Safety structure, or ownership including: the location of, or changes in frequency with which the highest governance body assesses LA7 Rates of injury, occupational diseases, lost days, and absenteeism, 38-40 operations, including facility openings, closings, and expansions; sustainability performance.) and number of work-related fatalities by region. and changes in the share capital structure and other capital 4.10 Processes for evaluating the highest governance body’s own 11 LA8 Education, training, counseling, prevention, and risk-control 37-38 formation, maintenance, and alteration operations (for private sector performance, particularly with respect to economic, environmental, programs in place to assist workforce members, their families, or organizations). and social performance. community members regarding serious diseases. 2.10 Awards received in the reporting period. 50-53 Commitments to External Initiatives Training and Education Report Parameter 4.11 Explanation of whether and how the precautionary approach or NA LA11 Programs for skills management and lifelong learning that support 36 Report Profile principle is addressed by the organization. the continued employability of employees and assist them in 3.1 Reporting period (e.g., fiscal/calendar year) for information provided. 1 4.12 Externally developed economic, environmental, and social charters, 20, 25, managing career endings. 3.2 Date of most recent previous report (if any). 1 principles, or other initiatives to which the organization subscribes 28 LA12 Percentage of employees receiving regular performance and career 36 3.3 Reporting cycle (annual, biennial, etc.) 1, 54 or endorses. development reviews. * 3.4 Contact point for questions regarding the report or its contents. 54 4.13 Memberships in associations (such as industry associations) and/ 13 Diversity and Equal Opportunity Report Scope and Boundary or national/international advocacy organizations in which the LA13 Composition of governance bodies and breakdown of employees ** 3.5 Process for defining report content, including: 4, 54 organization: per category according to gender, age group, minority group • Determining materiality; • Has positions in governance bodies; membership, and other indicators of diversity. * • Prioritizing topics within the report; and • Participates in projects or committees; HuMAn RIGHTS InDICATORS • Identifying stakeholders the organization expects to use the • Provides substantive funding beyond routine membership Disclosure on management approach 8 report. dues; or Employment 3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, leased 54 • Views membership as strategic. HR1 Percentage and total number of significant investment agreements 9 facilities, joint ventures, suppliers). Stakeholder Engagement that include human rights clauses or that have undergone human 3.7 State any specific limitations on the scope or boundary of the report. 54 4.14 List of stakeholder groups engaged by the organization. 4 rights screening. * 3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, 54 4.15 Basis for identification and selection of stakeholders with whom 4 HR3 Total hours of employee training on policies and procedures 9 outsourced operations, and other entities that can significantly affect to engage. concerning aspects of human rights that are relevant to operations, comparability from period to period and/or between organizations, 4.16 Approaches to stakeholder engagement, including frequency of 4 including the percentage of employees trained. * etc. engagement by type and by stakeholder group. SOCIETy InDICATORS 3.9 Data measurement techniques and the bases of calculations, 54 4.17 Key topics and concerns that have been raised through stakeholder 5 Disclosure on management approach 42 including assumptions and techniques underlying estimations engagement, and how the organization has responded to those key Community applied to the compilation of the Indicators and other information topics and concerns, including through its reporting. SO1 Nature, scope, and effectiveness of any programs and practices 42 in the report. ECOnOMIC InDICATORS that assess and manage the impacts of operations on communities, 3.10 Explanation of the effect of any restatements of information provided NA Disclosure on management approach 1, 16 including entering, operating, and exiting. * in earlier reports, and the reasons for such restatement (e.g., EC1 Economic value generated and distributed, including revenues, 16 Public Policy mergers/acquisitions, change of base years/periods, nature of operating costs, employee compensation, donations and other SO5 Public policy positions and participation in public policy development 45 business, measurement methods). community investments, retained earnings, and payments to capital and lobbying. 3.11 Significant changes from previous reporting periods in the scope, NA providers and governments. * SO6 Total value of financial and in-kind contributions to political parties, 45 boundary, or measurement methods applied in the report. EC2 Financial implications and other risks and opportunities for the 1, 24 politicians, and related institutions by country. GRI Context Index organization’s activities due to climate change. PRODuCT RESPOnSIBILITy 3.12 Table identifying the location of the Standard Disclosures in the 54 EC3 Coverage of the organization’s defined benefit plan obligations. 34 Disclosure on management approach 20 report. EC4 Significant financial assistance received from government. 27 Customer Health and Safety Assurance EnvIROnMEnT InDICATORS PR1 Life cycle stages in which health and safety impacts of products 21 3.13 Policy and current practice with regard to seeking external 54 Disclosure on management approach 20 and services are assessed for improvement, and percentage assurance for the report. Energy of significant products and services categories subject to such Governance EN3 Direct energy consumption by primary energy source. 30 procedures. 4.1 Governance structure of the organization, including committees 10 EN4 Indirect energy consumption by primary source. 30 PR2 Total number of incidents of non-compliance with regulations and 23 under the highest governance body responsible for specific tasks, EN6 Initiatives to provide energy-efficient or renewable energy based 23-27 voluntary codes concerning health and safety impacts of products such as setting strategy or organizational oversight. products and services, and reductions in energy requirements as a and services during their life cycle, by type of outcomes. * 4.2 Indicate whether the Chair of the highest governance body is also 10 result of these initiatives. Products and Service Labeling an executive officer. (and, if so, their function within the organization’s EN7 Initiatives to reduce indirect energy consumption and reductions 25-27, PR3 Type of product and service information required by procedures, 21, 28 management and the reasons for this arrangement). achieved. * 30, 32 and percentage of significant products and services subject to such 4.3 For organizations that have a unitary board structure, state the 10 Water information requirements. * number of members of the highest governance body that are EN8 Total water withdrawal by source. * 31 independent and/or non-executive members. Biodiversity * Indicates partial disclosure. 4.4 Mechanisms for shareholders and employees to provide ** EN13 Habitats protected or restored. 28, 29 ** www.ppg.com/corporategovernance recommendations or direction to the highest governance body. Emissions, Effluents, and Waste EN16 Total direct and indirect greenhouse gas emissions by weight. 3054 2010 PPG CorPorate SuStainability rePort
  • 57. PPG’s Board of Directors visited Colonna’s Shipyard, Norfolk, Va., USA, in October 2010 to see a customer operation firsthand. Colonna’s uses PPG products as part of its environmentally- responsible manufacturing operations. 2010 PPG CorPorate SuStainability rePortthe following are trademarks and/or registered trademarks of PPG and its related entities and are used in thisreport: Absolu System, Accu-Tab, Agilon, Alteos, Amercoat, Aquabase, Aquapon, Brander, Boonstoppel, CR-39,Dekoral, Duranar, EcoLogical Solutions From PPG, Envirobase, Freitag, Gauthier, Guittet, Hera, Histor, HYBON,Ivy, Johnstone’s, Leyland, Master’s Mark, Olympic, Pitt-Guard, PPG logo, PPG High Performance Coatings, PPG Cert no. SCS-COC-000648Pittsburgh Paints, PPG Porter Paints, Primalex, Prominent Paints, Rambo, Renner, Ripolin, Seigneurie, SigmaCoatings, Sigma logic, Sigmacryl ecoplus, SigmaShield, Solarban, Solarphire, Starphire, Sungate, Taubmans, this annual report is printed on paper that isTephram, Teslin, Trilak, Trinat, Trivex, ULTRA-Cool and VARI-Cool. FSC-certified, contains 30% post-consumerLucite is a registered trademark of E. I. du Pont de Nemours and Company, used under license. recovered fiber and is manufactured with electricity in the form of renewable energy .other company, product and service names used in this report may be trademarks or service marks of other parties .Copyright © 2011 PPG industries, inc ., all rights reserved . 55
  • 58. PPG Industries 201 0 One PPG Place Pittsburgh, PA 15272, USA (412) 434-3131 www.ppg.com CSR-CORP-0411-ENG-10K2010 PPG CorPorate SuStainability rePort